The new joint venture, which will be 51% owned by Hitachi and the remaining by ABB, will be responsible for the design, engineering, supply and after-sales services related to the DC system of HVDC projects.
Under the terms of the agreement, the two firms will explore further to address opportunities to widen the scope for future collaboration.
Hitachi chairman & CEO Hiroaki Nakanishi said: "I am confident that the establishment of a new company combining the strengths of Hitachi and ABB will provide a framework for the timely provision of the new technologies required by the Japanese HVDC market.
"By enhancing and expanding the HVDC business through its partnership with ABB, which has a strong performance record in the global market, Hitachi will continue to contribute to the stabilization of Japan’s electric power grid."
The joint venture will start operations in the next few months, subject to the necessary approvals and statutory procedures.
ABB CEO Ulrich Spiesshofer said: "Together we can build on our complementary strengths to play our part in the evolution of Japan’s power infrastructure."
