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Hitachi Power Solutions to spin off analysis contract service business

Hitachi Power Solutions Co. Ltd. will spin off its analysis contract service business through a stock transfer to investment fund Endeavour United Co. Ltd.

The company's analysis contract service business provides facilities including material evaluation, corrosion testing and strength analysis in environmental and food industries.

Under the planned transaction, the Hitachi Ltd. arm will establish in January 2020 an independent company that will absorb the analysis contract service business in March of that year. Shares of the new company will then be transferred to a special-purpose company under Endeavour United.

Following the transaction, which forms part of its plan to overhaul its business divisions, Hitachi Power Solutions said it will focus on its social innovation business.

Hitachi said the stock transfer will have a minor impact on its business results in the current fiscal year.