TOKYO -- Japan's Fuji Electric is launching a joint venture with Dalian Bingshan Group to develop power inverters and other devices used to control electric current, in hopes of tapping the Chinese company's sales network to market comprehensive, energy-saving power management systems.
Fuji Electric and Dalian Bingshan have signed a memorandum of understanding toward launching a venture that engineers such devices in the northeastern Chinese city of Dalian, possibly as early as June 2018. Fuji Electric is looking to have a 51% stake in the new company, though the figure has not yet been finalized.
There is growing demand for environmentally friendly equipment in China, due to the severe pollution there. Fuji Electric is known for developing power-saving systems that use inverters and similar devices. But so far, it has mostly sold individual products in China.
Fuji Electric aims to take advantage of the Chinese company's contacts in the industrial and logistics sectors to market comprehensive systems that combine its devices and Dalian Bingshan's freezers and air conditioning units.
The two companies have deep ties and partnered on the production of vending machines in 2003. The Japanese company has also been acquiring and launching engineering companies in Vietnam and India as part of its global strategy.