Milwaukee-based Rockwell Automation Inc. announced it has agreed to purchase the assets of the medium voltage drives business of Harbin Jiuzhou Electric Co. Ltd. of China for $83 million.
The closing of the transaction is expected in October.
The acquisition strengthens Rockwell Automationโs presence in the Asia-Pacific motor control market by adding significant capabilities in design, engineering and manufacturing of medium voltage drive products. It also provides access to grid-tie inverter technology. Jiuzhou has successfully served as Rockwell Automationโs contract manufacturer for seven years, in addition to its own well-established customer base.
โJiuzhouโs medium voltage drives business accelerates our emerging markets strategy,โ said Mike Laszkiewicz, vice president, general manager, Rockwell Automation power control business. โIt will enhance our position in the critical Asia-Pacific region by strengthening capabilities in the mid- and higher-power rated product lines.โ
โThis acquisition demonstrates an evolution and commitment to growing the long-term customer relationships we established as a contract manufacturer for Rockwell Automation,โ said Li Yin, Jiuzhou chairman of the board. โOur customers will benefit from Rockwell Automationโs advanced manufacturing, research and development capabilities, and global distribution. Our employees will now join a successful, global leader in technology that offers a competitive and comprehensive product and service portfolio in the automation industry. Weโre pleased to culminate our successful business relationship with Rockwell Automation.โ
โAs China expands the consumer side of its economy, investment will continue to grow, requiring energy-saving measures in factories and integrated power applications across many industries,โ said Bob Ruff, president, Rockwell Automation Asia-Pacific. โSubsequently, the market opportunities for power control in OEM, process, and heavy industry markets in Asia are expected to provide significant growth potential for this acquisition. Medium voltage drives are integral to many large automation projects. These drives help to maximize asset availability and manage energy consumption.โ