ABB and Hitachi today announced an agreement to form a joint venture, for high voltage direct current (HVDC) system solutions in Japan. The new entity, to be based in Tokyo, will be responsible for the design, engineering, supply and after-sales services related to the DC system of HVDC projects bringing in ABB's latest technologies to the Japanese market where Hitachi will be the prime contractor.

Hitachi and ABB will take equity interests of 51% and 49% respectively. This is the first step of a strategic partnership between Hitachi and ABB to contribute to the evolution of Japan's power network. Hitachi and ABB will explore further strengthening of the relationship and address opportunities to widen the scope for future collaboration.

The joint venture is expected to commence operations in the coming months, subject to the necessary approvals and statutory procedures.

"ABB pioneered HVDC 60 years ago and has continually pushed the boundaries of this technology. Our presence across half the world's installed base and our capability to develop and manufacture all major components of the HVDC value chain inhouse have put us in a leading position in the industry," said Ulrich Spiesshofer, CEO of ABB. "We are proud to enter into this partnership with Hitachi with a solid reputation and extensive 100 year long experience in the Japanese market. Together we can build on our complementary strengths to play our part in the evolution of Japan's power infrastructure."

Shares of ABB declined Rs 56.4, or 4.69%, to trade at Rs 1,147.40. The total volume of shares traded was 4,550 at the BSE (12.08 p.m., Tuesday).