Johnson Controls announced today it is immediately beginning operations of Johnson Controls-Hitachi Air Conditioning, a global joint venture that is said to provide global customers with a full range of air conditioning products and technology.
The joint venture agreement was made with Hitachi Ltd. and Hitachi Appliances Inc. Glendale-based Johnson Controls first announced its intention to form the joint venture in January.
Through the agreement, Johnson Controls acquired a 60 percent ownership stake of the new entity, which has approximately $2.8 billion in sales annually. Hitachi Appliances retains ownership of the remaining 40 percent of the company.
The joint venture includes approximately 14,000 employees and 24 global locations dedicated to design, engineering and manufacturing throughout Asia, Europe and Latin America. It will build on both organizations’ technology, research and development leadership, as well as expanding marketing channels.
Johnson Controls-Hitachi Air Conditioning brings together Hitachi’s air conditioning products, which include variable refrigerant flow systems, residential air-conditioning solutions, high-efficiency chillers and leading-edge rotary and scroll compressors, with Johnson Controls’ HVAC and building automation solutions.
The joint venture’s management team will be led by Franz Cerwinka, chief executive officer, and Shinichi Iizuka, chief operating officer and president.
Cerwinka has 20 years of experience with Johnson Controls, including four years in Japan as vice president of finance with the company’s automotive business and work with more than 10 joint ventures. Iizuka has been with Hitachi for more than 35 years, having spent eight years in India as the president of Hitachi Home & Life Solutions India Ltd. He has led Hitachi’s air conditioning business since 2013.
“We are very pleased to start operations and are anxious to serve our customers with an unmatched global network of channels and technology,” Cerwinka said. “Johnson Controls and Hitachi are a perfect match with our complementary product lines, unparalleled brands and rich 100-year histories.”
“I have spent my career with Hitachi and know that combining with Johnson Controls will propel us forward to outperform the competition,” Iizuka said. “Just as Hitachi and Johnson Controls have each made innovation the foundation of their separate success, innovation will now be the cornerstone of Johnson Controls – Hitachi Air Conditioning’s success.”