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LSIS buys Parker Hannifin unit
2018-12-08
 Korean energy-solution company LS Industrial Systems (LSIS) announced Wednesday that it has acquired the energy grid tie (EGT) division of Parker Hannifin, the largest energy storage system company in North America, paving the way for LSIS to expand into the global smart-energy market. LSIS said it officially launched its North American affiliate LS Energy Solutions as a result of the acquisition of Parker Hannifin’s EGT division. LS Energy Solutions is based in Charlotte, North Carolina, where Parker Hannifin is headquartered. With the acquisition, LS Energy Solution is now the largest energy storage system (ESS) supplier in North America. The EGT division of Parker Hannifin, which entered the ESS business in 2007, had 400 megawatts of installed capacity in the global market, including Europe, South America, Australia and Southeast Asia. After adding LSIS’s ESS assets, the installed capacity is now more than 700 megawatts. “With this acquisition, we secured an outpost from where we can expand to overseas markets with LSIS innovative smart-energy technology,” said LSIS Chairman and CEO Koo Ja-kyun. 

 
 “First, we will achieve tangible business success from the North American market, which is a strategic region globally.” He said, by 2030, the accumulated capacity for ESS globally is expected to be around 125 gigawatts, which is roughly 66 times the 2016 level. “Eight countries including Korea, the United States and China will account for 70 percent of the installed capacity,” Koo said. “Our long-term goal is leading the industry trend and becoming a global player by securing the market early through pre-emptive investments.” Jim Hoelscher, LS Energy Solutions president and previously general manager of Parker Hannifin’s EGT division, said combing EGT’s power conversion systems and system integration capabilities with LSIS’s electric-power products, such as switchgears and circuit breakers, will make the new company a competitive one-stop shop for energy storage offerings. “With the rapid transformation of the energy landscape, including the extensive deployment of renewable power sources and microgrids - the need for flexible and cost-effective ESS will continue to grow,” Hoelscher said.
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