Hitachi Ltd. has signed a joint-venture agreement with Walid Ahmad Juffali Co. Ltd. (WJCO) for a gas-insulated switchgear business.



In the agreement, Hitachi will hold a 51-percent share of equity while WJCO will hold a 49-percent share.



Both companies agreed to construct a new manufacturing plant for gas-insulated switchgear  in Jeddah.



The joint-venture will be formed amid a growing need for power transmission and distribution owing to the introduction of renewable energy in recent years.



This increased the demand for electric power in emerging economies and for renewal of aging transmission and distribution devises in advanced countries.



In the Middle East, an increasing population and economic growth have underpinned a sharp increase in demand for electric power. There is an urgent need to bolster the power transmission and distribution infrastructure.



Amid this developments, gas-insulated switchgear plays a vital role in the field of electric power transmission and distribution. Hitachi seeks to expand its transmission and distribution business in the global market and has established established related companies in Atlanta, Suzhou, Shandong, Taichung, Jakarta and Singapore.



In Saudi Arabia, Hitachi has partnered with WJCO, with which it has a long-standing relationship.



Since the 1970s, Hitachi has constructed numerous substations in the Middle East, mainly in the Kingdom and Kuwait.



The Juffali Group has been contributing to the execution of Hitachi’s substation projects in the Kingdom since 1978 as a local partner. The establishment of this joint venture will combine Hitachi’s technological capabilities with WJCO’s outstanding position in the Saudi Arabian market to provide highly reliable equipment and services.



Looking ahead, Hitachi will mainly utilize its global production and engineering bases to answer the needs of countries and regions seeking to establish and expand their power transmission and distribution infrastructure. — SG