US-based Fuji Electric America has acquired a majority share of Canadian rail manufacturer SEMEC Electro-Mecanique (SEMEC).
The acquisition will expand the Edison-based power firm’s transit business in North America. It intends to use SEMEC’s engineering strengths, sales channels, and service capabilities, in addition to its own transit business, which includes door-opening and door-closing devices, propulsion, and auxiliary power supply devices.
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Fuji Electric will add its own technological capabilities in design and production engineering to SEMEC’s door-opening and door-closing device designs, while also benefitting from SEMEC’s manufacturing subsidiaries in New York. This will strengthen its bidding position on projects under the Buy American Act guidelines and other similar laws and regulations.
Fuji Electric America’s president and CEO Philip Charatz said: "SEMEC has a solid reputation for manufacturing quality products, and they are a well-rounded company, skilled at everything from development, to production, to sales.
"This business model will complement our Transit business nicely and will support our long-term growth initiatives in North America."
The deal, which was completed in February, allows Fuji Electric to purchase 51% of SEMEC. However, the companies have not disclosed the financial terms of the deal.
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By GlobalDataCharatz further noted: "This acquisition, coupled with our recent opening of a 37,000ft² factory in Virginia to develop auxiliary power supply devices for railways, is a testament to our strategic vision for our North American Transit business.
"We have an aggressive five-year growth plan and are committed to taking the major steps necessary to achieve those goals."
