Rockwell Automation announced that the company acquired the assets of its seven-year contract manufacturer, Harbin Jiuzhou Electric's (HJE) medium voltage drives business. The purchase was made for approximately $83 million.
The agreement expands Rockwell Automation's design, engineering and manufacturing capabilities in Asia's growing motor control market, according to Rockwell Automation.
"Jiuzhou's medium voltage drives business accelerates our emerging markets strategy," said Mike Laszkiewicz, vice president and general manager of Rockwell Automation's 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."
With China's consumer economy growing, investments will require more energy-efficient measurements taken in factories and integrated power applications among various industries, said Bob Ruff, president of 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," Ruff said. "Medium voltage drives are integral to many large automation projects. These drives help to maximize asset availability and manage energy consumption."
The acquisition displays HJE's commitment to the future of its customer-relationship with Rockwell Automation, said Dr. Li Yin, HJE's chairman of the board.
"We're pleased to culminate our successful business relationship with Rockwell Automation," Yin said.