Hitachi to Withdraw from Home Air Conditioner Business; Will Focus on Core Businesses, High-Growth Areas

The Yomiuri Shimbun

12:30 JST, July 28, 2024

Hitachi, Ltd. has announced the company would withdraw from manufacturing air conditioners for households.

The electric appliance company is selling a joint air conditioner company it started with U.S. company Johnson Controls International PLC (JCI) to Germany’s Robert Bosch GmbH (Bosch). Hitachi’s equity in the sale will be $1.4 billion (about ¥218 billion).

Hitachi and JCI established the joint company in 2015, with Hitachi holding 40% of shares and JCI 60%. They aim to complete the sale by June 2025. After being sold, the joint company will become a wholly-owned subsidiary of Bosch, which will sign a brand license agreement with Hitachi and continue selling air conditioners for home use under the Hitachi brand.

However, Hitachi is optimistic about the future of its air conditioner business for companies because more demand is expected from data centers. To continue with the business, a subsidiary of Hitachi on electric appliances will acquire the factory of the joint company.

In 1952, Hitachi became the first company to sell window air conditioners in Japan. In 1959, a polar bear (“shirokuma” in Japanese) symbol was attached to Hitachi’s air conditioners, and the brand name Shirokuma-kun was known across the country by 1975. Hitachi will now concentrate its efforts on its core businesses and high-growth areas, while selling businesses that do not synergize with these.