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Johnson Controls, Hitachi Form Global Air Conditioning JV

Johnson Controls, Inc.JCI recently announced the completion of its joint venture with Hitachi, Ltd. and Hitachi Appliances, Inc. Notably, the joint venture will start operating as Johnson Controls-Hitachi Air Conditioning with immediate effect. The united entity will provide a full range of world class air conditioning products and technologies to global customers.

On Jan 21, 2015, Johnson Controls, Hitachi, Ltd. and Hitachi Appliances, Inc. had signed the agreement for this global joint venture. Under this agreement, Johnson Controls has obtained 60% ownership of Johnson Controls-Hitachi Air Conditioning, while Hitachi and Hitachi Appliances have the remaining 40%. This entity is expected to record sales of $2.8 billion in 2016.

The new organization will employ 14,000 workers for designing, engineering and manufacturing operations across 24 locations in Asia, Europe and Latin America. The company will focus on technology, research and development leadership and marketing channel expansion.

Johnson Controls-Hitachi Air Conditioning will offer customers a diverse range of air conditioning products including Hitachi's variable refrigerant flow systems, residential air-conditioning solutions, high-efficiency chillers and leading-edge rotary and scroll compressors along with Johnson Controls' heating, ventilating and air conditioning (HVAC) and building automation solutions. This will help the joint venture to satisfy the rising demand for energy-efficient air conditioners.

Franz Cerwinka will preside as the CEO of Johnson Controls-Hitachi Air Conditioning while Shinichi Iizuka will be the chief operating officer and president.

Johnson Controls currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the auto industry include Ford Motor Co. F , Continental Aktiengesellschaft CTTAY and PACCAR Inc. PCAR . All three stocks carry a Zacks Rank #2 (Buy).

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FORD MOTOR CO (F): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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