With the urgent global need for climate protection and a transition away from fossil fuels, industry is in a state of flux. To address this challenge, German sensor solutions provider SICK and Swiss measurement solutions specialist Endress+Hauser (E+H) have announced the signing of a joint memorandum of understanding to establish a strategic partnership in the “clean industry” sector. This initiative will bring innovation to the field of process automation while helping to support customers in achieving their sustainability goals.

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As the global economy continues to move towards carbon neutrality, more and more businesses are looking to reduce energy and resource consumption and gradually transition to non-fossil fuels and resources, which requires new technologies and solutions, especially in the field of process automation, which cannot be achieved without smart sensors and systems to monitor and control new process technologies. Both companies see an opportunity to work together to contribute to future-oriented power supply, while also helping process industry customers across the value chain achieve their sustainability goals.

In order to remain competitive in the ever-changing process automation market environment, SICK and E+H decided to open up new avenues of collaboration. To this end, the two companies have signed a joint memorandum of understanding to establish a joint venture company in the field of process automation.

According to the plan, each side will hold half of the shares in the joint venture and each will send half of its senior management. E+H will provide financial support, share its technical expertise and expand its global sales channels. At the same time, SICK will contribute to the product production segment of its clean Industries business cluster, which includes several research and development and production sites throughout Germany. SICK’s global sales and service departments, especially those in the clean industry sector, will be transferred to E+H’s sales center. The parties plan to conduct a comprehensive review of the relevant business areas by the end of the first quarter of 2024 and formally sign the integration and related transaction contracts, with the closing plan scheduled for completion in mid-2024.