LSIS acquires Parker Hannifin's ESS unit

Oh Jae-seok, right, executive vice president of the energy systems business group at LSIS, poses for a photo with Paul Horvat, left, vice president of motion systems group at Parker Hannifin, and Jim Hoelscher, president of LS Energy Solutions, after signing a contract to take over Parker Hannifin's Energy Grid Tie (EGT) division at the office of LS Energy Solutions in North Carolina. / Courtesy of LSIS

By Jun Ji-hye

LSIS has acquired U.S.-based Parker Hannifin's energy storage system (ESS) business unit in to expand its presence in the rapidly-growing global smart energy market, the Korean company said Wednesday.

Parker Hannifin is one of the leading companies in North America specializing in motion and control technologies.

LSIS, Korea's leading power and energy systems provider, said it signed a contract to take over production facilities and manpower of the Parker Hannifin's Energy Grid Tie (EGT) division, and launched LS Energy Solutions under the wing of LSIS's North American subsidiary.

The value of the deal and other details were not disclosed.

Parker Hannifin's EGT division began the ESS business in 2007, having secured world-class technologies in designing, manufacturing and setting up ESSs. Based on this, the American company has rapidly expanded its presence in Europe, Central and South America, Australia and Southeast Asia, becoming the largest ESS provider in North America, according to LSIS.

The Korean firm said through the latest contract, technical capability and top-class products of the two companies will be integrated, which will enhance its capability in running smart energy businesses.

LSIS plans to focus on developing new products and strengthen production capability in order to expand its influence in the global market, using North America as a strategic position.

“Through the takeover integrating innovative smart energy technology of LSIS with customer base and technical knowhow of LS Energy Solutions, we could secure the outpost for the global market invasion,” said LSIS CEO Koo Ja-kyun. “Our first goal is to make visible results in the North American market.”

Koo added his firm will make pre-emptive investments to take the advantageous position before competitors and become a global player.

An ESS is used to save energy produced at one time for use at a later time for efficient distribution of power. The system is essential in utilizing new regeneration energy whose production and supply can be changeable in accordance with changes in external environment.

The ESS market is growing rapidly, with the supply of new regeneration energy growing worldwide.

According to research organization Bloomberg New Energy Finance, a total of $103 billion is expected to be invested in the ESS market from 2016 to 2030, and the scale of the global market in 2019 is expected to grow 40 percent from this year.