Mitsubishi Heavy Industries, Ltd. to Acquire Industrial Power Generation
Company Pratt & Whitney Power Systems
Agreement Signed with United Technologies
LAKE MARY, Fla., Dec. 12, 2012
LAKE MARY, Fla., Dec. 12, 2012 /PRNewswire/ --Mitsubishi Heavy Industries,
Ltd. (MHI) has concluded an agreement with United Technologies Corporation
(UTC) of the U.S. under which MHI will acquire Pratt & Whitney Power Systems
(PWPS), the small and medium-size gas turbine business unit of Pratt & Whitney
(P&W), an aeroengine manufacturer. MHI and UTC, P&W's parent company, signed
the agreement earlier this week.
(Logo: http://photos.prnewswire.com/prnh/20121212/NY27934LOGO )
PWPS engages primarily in the engineering, assembly and sales of
aero-derivative gas turbines and also provides gas turbine services and
engineering, procurement and construction services of related power generation
systems. The company has approximately 430 employees. PWPS owns a majority
share of Turboden s.r.l. of Italy, a manufacturer of Organic Rankine Cycle
(ORC) turbines, which will also be included as part of the acquisition.
MHI, which has focused its gas turbine business principally on large-capacity,
high-efficiency systems, will significantly diversify its power generation
product portfolio with the acquisition of PWPS. PWPS's aero-derivative gas
turbines have been highly acclaimed, especially for emergency power generation
applications, for their compact design and rapid start-up time, with over
1,700 units delivered to date worldwide. Going forward, significant growth is
anticipated in applications requiring a flexible power source complementary to
a renewable-energy power source. Robust market demand is also expected as
small power sources for application in emerging markets. PWPS's main products
to date have been 30MW (megawatt) class machines, but currently the company is
developing new 60MW class models, which are expected to boost PWPS's market
PWPS US operations will be aligned with Mitsubishi Power Systems Americas,
Inc. (MPSA), headquartered in Lake Mary, Florida. MPSA President Koji
Hasegawa, stated, "The PWPS business offers tremendous synergy with our
existing US operations. It significantly diversifies our equipment offering
and compliments the scope of our service business."
Turboden's ORC turbines have the capability to generate power or supply hot
water using a relatively low-temperature heat source, e.g. biomass, factory
waste heat or geothermal energy. Until now the company has sold more than 300
units in 20 countries, primarily in Europe. In Japan, increasing opportunities
are emerging to use this technology in biomass and geothermal applications.
In its gas turbine business, MHI is presently establishing a global structure
to substantially increase manufacturing capacity of large high temperature,
high-output gas turbines annually. In addition to output from its Takasago
Machinery Works in Japan, shipments have now also begun from MPSA's Savannah
Machinery Works, a new gas turbine manufacturing and service facility located
in Pooler, Georgia. With the addition of flexible and reliable small and
medium-size offerings to its product portfolio through the acquisition of
PWPS, MPSA will now be able to meet broader customer needs through
combinations of those units and high-efficiency machines.
Going forward, MHI intends to further strengthen its marketing activities for
gas turbines, which offer clear benefits in terms of efficient energy usage
and reduction of environmental burdens, leveraging the merits of both
large-capacity and aero-derivative gas turbines as well as their synergy
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 systems and air-conditioning systems.
For many years MHI and P&W have been in a collaborative relationship in
aeroengine production, including recent joint development of the new jet
engine for the Mitsubishi Regional Jet. After acquisition of PWPS, we will
maintain our collaborative relationship in the supply of engine parts for gas
turbines and development of new machines as MHI targets expansion in
aero-derivative gas turbine business.
In its 2012 Medium-Term Business Plan, a comprehensive three-year plan
launched this fiscal year, MHI set a basic policy calling for full utilization
of its strengths and synergy effects through consolidation and restructuring
of all operations into four business domains – "Energy & Environment" and
"Defense & Aerospace," for example – and to accelerate global business
development in a quest to expand its business scale to the 5 trillion yen
level. Among the four business domains, the company now considers Energy &
Environment of highest importance, and its new business plan calls for
concentrated investment of management resources into this area as a way of
achieving business scale expansion rapidly. The acquisition of PWPS falls in
line with this initiative.
For more information, please visit the MHI website
About Mitsubishi Power Systems Americas, Inc.
Mitsubishi Power Systems Americas, Inc. (MPSA) was established in 2001 and is
headquartered in Lake Mary, Florida with key operations in Orlando, FL,
Savannah, GA, Newport Beach, CA, and Houston, TX. MPSA provides a wide variety
of products and services for the electric power generation industry including
gas, steam, wind and geothermal turbines, boilers, and selective catalytic
reduction systems. The company's ultimate parent is Mitsubishi Heavy
Industries, Ltd. (MHI), a diversified Fortune "Global 150" company with more
than $30 billion in annual revenues and 40,000 employees worldwide. MHI is an
international leader in the design and supply of energy, aerospace, machinery,
transportation, and environmental systems and equipment.
SOURCE Mitsubishi Heavy Industries, Ltd.
Contact: MHI PRESS CONTACT: Hideo Ikuno: email@example.com, Tel:
+813-6716-5277, Fax: +813-6716-5929 or Daiya PR (in charge of public relations
for Mitsubishi Heavy Industries, Ltd.); MPSA PRESS CONTACT: Sonia Williams,
Sonia.Williams@mpshq.com, +1-407-688-6257; MPSA CUSTOMER CONTACT: Bill Newsom,
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