Hitachi has acquired Joliet Electric Motors, an Illinois-based company, to boost U.S. sales and maintenance services, particularly in large motors. The Japanese giant finalized the deal last Friday and Hitachi Industrial Products, the company's large industrial equipment division, will oversee operations.

Joliet has repaired and rebuilt large motors for North America's energy and heavy industry sectors for 90 years. 

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Joliet has been a Hitachi sales distribution partner for the oil drilling industry since 2002, delivering some 1,100 large motors within North America. With the acquisition, Hitachi hopes to enhance its recurring business by expanding the sales of large industrial equipment in North America, strengthening its maintenance service business for existing products, and entering into the maintenance service business for products manufactured by other companies. The company also aims to provide electrified products to reduce CO2 emissions from energy sources. 

According to the U.S. Energy Information Administration's 2023 Energy Outlook, CO2 emissions from energy sources in the U.S. are expected to decrease by 2050 due to the advancement of electrification, improved efficiency of equipment, and the expansion of renewable energy generation. However, growing global demand is projected to increase oil and natural gas production over the next 25 years. 

Hitachi plans to collaborate with Joliet to provide maintenance service operations for some 7,000 wind farm generators and large motors installed in Hitachi Group products in North America. By leveraging Joliet's sales channels, Hitachi hopes to accelerate the transition from fossil fuel-powered engines to electrification products in drilling, refining, storage and transportation. 

Through the repair and rebuild business, Hitachi will propose moves to high-efficiency equipment, which it hopes will expand recurring business by managing CO2 emissions, collection, and re-manufacturing/reuse. 

In the future, Hitachi aims to collect operational data from electrification products through sensing devices and use Hitachi's Lumada, the company's digital transformation arm, to develop applications for maintenance engineers. Based on the knowledge and data obtained through maintenance services, Hitachi will grasp the potential needs of customers and use AI to propose equipment designs and energy optimization operations. 

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