Ingersoll-Rand plc and Mitsubishi Electric Corporation will be partners later this year, in a market that is not the first that comes to mind for either.
The Ireland- and Japan-headquartered companies announced an agreement Wednesday that, pending global antitrust approval, will cast them into a 50-50 joint venture marketing, selling and distributing heating and air conditioning systems. The companies highlighted that the units will be of the ductless and variable refrigerant flow variety.
Ingersoll Rand EVP David Regnery said that “the unique value of the joint venture is the pairing of premium systems, extensive distribution, and deep technical, product and applications expertise.” Mitsubishi Electric US president and CEO Keijiro Hora, meanwhile, mentioned “product expertise, industry knowledge and channel coverage” as major selling points.
The joint venture is expected to start operations during the first or second quarter this year, with a CEO named from Mitsubishi Electric and a CFO named from Ingersoll Rand. Headquarters will be in Suwanee, Georgia, about 35 miles northeast of downtown Atlanta, and about 230 miles southwest of Ingersoll Rand’s American operation headquarters in Davidson, North Carolina.
Ingersoll Rand has about 52,000 employees and annual revenues of $13 billion. Mitsubishi Electric has about 120,000 employees and annual revenues of 4.5 trillion yen, or about $36 billion.