|By JCN Newswire||
|January 15, 2013 02:08 AM EST||
Tokyo, Jan 15, 2013 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI) has signed an agreement with Qingdao Jieneng Steam Turbine Group Co., Ltd. of China, a major manufacturer of small steam turbines, under which the two companies will jointly establish Mitsubishi Heavy Industries Jieneng (Qingdao) Steam Turbine Co., Ltd. as a marketing and design unit for small and medium-size steam turbines and marine-use steam turbines. Through establishment of the JV, MHI aims to strengthen its competitiveness in a quest to expand its global market share. The JV is slated to begin operation in March 2013.
The JV will be capitalized at 31 million yuan (approx. 400 million yen), with MHI holding a 51% equity stake and Qingdao Jieneng Steam Turbine Group, the remaining 49%. The head office will be located in Qingdao. The JV will handle marketing and design of land-use steam turbines in the 50 - 200 megawatts (MW) range and below 10MW marine-use steam turbines.
Through the JV, MHI plans to license pertinent turbine technology to Qingdao Jieneng Steam Turbine Group. The JV will pursue the sales expansion of the turbine manufactured by Qingdao Jieneng Steam Turbine Group.
MHI has been looking to fortify its global business structure to attract more orders and at the same time evade currency exchange risks. Qingdao Jieneng Steam Turbine Group has been seeking expansion into markets for medium-size steam turbines and marine-use steam turbines. The intentions of the two companies thus meshed and led to the agreement on the JV's establishment.
Qingdao Jieneng Steam Turbine Group is a well-established turbine manufacturer founded in 1950. The company manufactures approximately 500 units annually, mostly small steam turbines below 60MW. It has some 2,300 employees, is focused on steam turbines for use in factories and power generation, and enjoys a considerable market share. It also enjoys an abundant track record in deliveries to the Asian markets, especially Indonesia and India.
Going forward the JV will introduce globally competitive products into the Asian markets leveraging the combined capabilities in development and manufacturing of its two parent companies, and conduct aggressive marketing activities. MHI intends to optimize on its new JV as a way of expanding its own market share. MHI also plans to maintain and further develop its solid collaborative relationship with Qingdao Jieneng Steam Turbine Group while fully supporting the new JV's business development.
About Mitsubishi Heavy Industries
Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 2,820.9 billion yen in fiscal 2011, the year ended March 31, 2012. MHI's diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems. For more information, please visit the MHI website at www.mhi.co.jp.
Source: Mitsubishi Heavy Industries
Mitsubishi Heavy Industries Hideo Ikuno [email protected] +81-3-6716-5277
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