San Jose, CA, U.S.A. and Hangzhou, China --- (METERING.COM) --- March 28, 2012 - Echelon Corporation and Holley Metering have announced an agreement under which the two companies will form a new joint venture company in China, Zhejiang Echelon-Holley Technology Co., Ltd, to focus on the development and sales of advanced smart metering products for China.
The new company will be headquartered in Hangzhou, China, and will develop advanced smart metering and related solutions that deliver performance, reliability and expanded functionality to China's developing smart grid. The partnership will leverage Echelon's Silicon Valley energy control networking innovation center and its 20 years of experience in powerline control and communications hardware and software platforms for smart grid applications, and Holley Metering's breadth of metering solutions, low cost manufacturing competencies and extensive customer relationships.
The joint venture is majority owned by Echelon, but both companies will contribute cash and resources into the new company.
The partnership is expected to create significant value, not only for the two companies involved, but also for the customers, distributors, OEMs and other agents throughout China.
“We are delighted to broaden our partnership with Holley Metering to serve the larger smart grid market in China,” commented Ron Sege, chairman and CEO of Echelon. “With a mandate to connect 300 million homes and businesses to the smart grid over the next five years, Chinese utilities will need to leverage the best the world has to offer.”
“We are extremely excited to utilize Echelon's technologies and leverage their extensive experience gained by connecting more than 35 million homes and 300,000 buildings to the smart grid,” added Jin Meixing, chairman of Holley Metering. “By bringing the best technology in the world into China and incorporating it into products that meet this market's unique needs, we can grow our business and satisfy a critical, unmet need.”
Echelon-Holley is expected to be operational in Q3 2012.