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Japanese trio pools HV motor production

01 September, 2001

Hitachi, Fuji Electric and Meidensha have agreed to transfer their planning, design and production of high-voltage motors and mid-sized generators to a joint venture company that they set up last year. The move is a response to poor market conditions in Japan, and tough competition from global rivals.

Originally, the joint venture, Japan Motor and Generator (JMG), was established to perform shared R&D work and to cut development cycles. Now that JMG has achieved its initial targets, the three partners have decided to merge their core technologies and to transfer production to the joint venture. They hope that the move will allow research results to reach the market quicker and will make production more efficient.

The partners have raised their investment in JMG to around £13.8m and expect it generate sales worth £115m in the next financial year. The company will employ around 600 people making motors for use above 600V in ratings up to 5MW, and AC generators rated at up to 5MVA.

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