Echelon Corp. and Holley Metering Ltd. 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. Echelon-Holley is committed to act in the best interests of the two companies' respective customers and agents.
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 highly reliable power line 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. Echelon and Holley Metering will both contribute cash and resources into the new company.
This transaction represents a unique relationship between Chinese and U.S. companies in the smart grid industry. The partnership will create significant value, not only for the two companies involved, but also for the customers, distributors, OEMs and other agents throughout China. This transaction is a highly constructive development in the industry.
The Echelon-Holley joint venture is expected to be operational in Q3 2012.