A Scottish engineering firm specialising in hydraulic technology has been acquired by Danish multi-national Danfoss for an undisclosed sum.
Artemis Intelligent Power, which is based near Edinburgh, was established in 1994 and holds many patents and trademarks globally. The company had been a wholly-owned subsidiary of Japan’s Mitsubishi Heavy Industries.
Danfoss, which has acquired a majority stake in the business, said it had plans to develop the firm’s existing facilities and generate new jobs. Mitsubishi Heavy Industries will hold a minority stake in the venture.
The Danish group also confirmed that it will establish a manufacturing presence near to Artemis’s existing facility at Loanhead. This will enable it to deliver products to the market based on “digital displacement technology”, while establishing the site as a centre of excellence in this field.
The technology will enable Danfoss to develop hydraulic pumps, motors and systems for use in off-road vehicles, trains, industry and other market sectors worldwide.
Earlier this year, a consortium comprising Danfoss and Artemis secured £11 million from the Advanced Propulsion Centre UK to help develop digital displacement technology, alongside Bathgate-based firm Robbie Fluid Engineering.
Jeff Herrin, vice president, research and development at Danfoss Power Solutions, said: “Danfoss Power Solutions and Artemis Intelligent Power (AIP) have enjoyed many years of close relationship, working on the development of digital displacement technology together.
“We now look forward to commercialising this technology in a new family of hydraulic pumps. With this collaboration with both Artemis and Mitsubishi, these development activities will accelerate and broaden in scope.
“I’m truly looking forward to working closely with Mitsubishi Heavy Industries colleagues to fully develop the potential of the AIP business and its associated technologies.”
Niall Caldwell, managing director at Artemis Intelligent Power, added: “For as long as people need to dig, build and plough, we will need heavy machines to help. But this market urgently demands cost-effective digital technologies to reduce emissions and enable automation.
“I’m thrilled that our technology and our team have been recognised as a key part of the solution by a leading global manufacturer. Like Mitsubishi, Danfoss sees developing energy-saving technologies as the foundation of its future business.”
The acquisition is expected to be fully completed during the fourth quarter of 2018. The parties have not disclosed the purchase price or other conditions of the acquisition.