TOKYO (dpa-AFX) - Mitsubishi Electric Corp. (MIELY.PK), a Japanese
electronics and electrical equipment major, announced Friday that it has agreed
to transfer the distribution transformer business of its Nagoya Works to Hitachi
Industrial Equipment Systems Co., Ltd.

The assets and other items related to the distribution transformer business,
comprising development, design, manufacturing, sales, and maintenance, will be
transferred to Hitachi Industrial after obtaining approval from the relevant
authorities. The companies will integrate their businesses. The transferring
will be in stages beginning in October 2024, with completion scheduled for April
1, 2026.

The business transfer does not include the transformers manufactured at
Mitsubishi Electric's Transmission & Distribution Systems Center, Ako Factory.

Distribution transformers are used to lower the voltage of high-voltage
electricity generated by power plants, so that the power can be used to meet the
needs of the users. They are installed at relay points of the power grid, such
as substations, public facilities, business facilities, and commercial
facilities.

Through the business transfer, Hitachi Industrial Equipment Systems will expand
its product lineup of highly energy-efficient and eco-friendly transformers. It
will accelerate the growth of grid edge solutions centered on power distribution
systems, mainly in the domestic market.

Hitachi Industrial aims to contribute to the sustainable evolution of Japan's
power transmission and distribution network by utilizing Hitachi Group's wider
capabilities in IT, OT, and Products.

Mitsubishi Electric will focus on expanding its FA systems business based on its
portfolio strategy of concentrating investments in priority growth businesses.



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