Rockwell Automation, Inc. (NYSE: 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 Automation’s 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 Automation’s contract manufacturer for seven years, in addition to its own well-established customer base.
“Jiuzhou’s 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 Automation’s 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. We’re 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.”