Rockwell Automation To Acquire Medium Voltage Drives Business of Harbin Jiuzhou Electric Co., Ltd.
Acquisition expands business footprint in Asias growing motor control market by adding full design, engineering and manufacturing capabilities
MILWAUKEE--(BUSINESS WIRE)-- Rockwell Automation, Inc. (ROK) today announced it has agreed to purchase the assets of the medium voltage drives business of Harbin Jiuzhou Electric Co., Ltd. The purchase price is RMB 530 million (approximately $83 million U.S. dollars). Closing is expected in October.
The acquisition strengthens Rockwell Automations 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 Automations contract manufacturer for seven years, in addition to its own well-established customer base.
Jiuzhous medium voltage drives business accelerates our emerging markets strategy, said Mike Laszkiewicz, vice president, general manager, Rockwell Automation power control business. It will enhance our position in the critical Asia-Pacific region by strengthening capabilities in the mid- and higher-power rated product lines.
This acquisition demonstrates an evolution and commitment to growing the long-term customer relationships we established as a contract manufacturer for Rockwell Automation, said Dr. Li Yin, Jiuzhou chairman of the board. Our customers will benefit from Rockwell Automations 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. Were pleased to culminate our successful business relationship with Rockwell Automation.
As 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, said Bob Ruff, president, Rockwell Automation Asia-Pacific. Subsequently, 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.
Rockwell Automation employs more than 1,900 people in China, working among its 35 sales offices, five training centers, manufacturing facilities, a global research and development center and a software development center. More than 6,000 Chinese students are also trained annually, through Rockwell Automation laboratories and an award-winning educational program offered at more than 50 universities throughout 20 provinces.
Jiuzhou serves customers in the electric power, petrochemical, steel, metallurgy, municipal, cement and construction industries. Its medium voltage business will be aligned with the Rockwell Automation Control Products & Solutions operating segment.
Harbin Jiuzhou Electrical Co., Ltd. focuses on research and development, manufacturing, sales and services of high power, electrical and electronic equipment. Products include medium voltage drives, direct current power supplies, switch gear and wind inverters. Jiuzhou was established in 2000 and is registered in Harbin.
Rockwell Automation, Inc., the worlds largest company dedicated to industrial automation and information, makes its customers more productive and the world more sustainable. Headquartered in Milwaukee, Wis., Rockwell Automation employs about 21,000 people serving customers in more than 80 countries.
John Bernaden, 414-382-2555 (Media)
Rondi Rohr-Dralle, 414-382-8510 (Investor Relations)
VP Investor Relations and Corporate Development
Source: Rockwell AutomationCopyright Business Wire 2012