The post Hitachi Exiting MHPS; MHI Will be Venture’s Sole Owner appeared first on POWER Magazine.

Japanese technology conglomerate Hitachi will withdraw from Mitsubishi Hitachi Power Systems (MHPS), a joint venture it established in 2014 with another power equipment giant, Mitsubishi Heavy Industries (MHI), over a dispute stemming from construction of two massive defect-ridden coal plants in South Africa.

Under a Dec. 18-announced settlement reached by MHI and Hitachi, Hitachi will pay MHI 200 billion yen ($ 1.8 billion) in March, and transfer its 35% stake in MHPS to MHI, which currently holds the remaining 65%. Hitachi will also request the Japanese Commercial Arbitration Association, the entity tasked with deciding the dispute, to immediately stop the progress of arbitration, while MHI will do the same after it receives Hitachi’s payment and shares.

The extent to which the changes will impact MHPS’s operations are unclear. Hitachi suggested it will withdraw completely from management from MHPS, though it will continue to work with MHI on maintenance services of existing thermal power plants.…

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