TOKYO -- Fuji Electric will acquire German fireproof engineering company N2telligence in the first half of the month, aiming to broaden sales routes and lower fuel cell production costs through economies of scale.
The Japanese electrical equipment manufacturer will buy a 70% stake from investment companies and founders for a sum thought to reach nearly 1 billion yen ($8.24 million). Fuji Electric entered the fuel cell business in 2009, delivering products for private power generation to Japan, South Korea and Europe with nearly 1 billion yen in annual sales.
Established in 2006, N2telligence has exclusive rights to use fuel-cell-related patents owned by Airbus. Fuel cells produce electricity by reacting hydrogen with oxygen in the air. N2telligence's systems take advantage of this to lower oxygen concentrations in such settings as warehouses, reducing the likelihood of fire.
Fuji Electric aims to boost the German company's annual sales to more than 5 billion yen by 2018, compared with 100 million yen to 200 million yen at present. In addition to Germany, it will cultivate demand in such markets as South Africa.