MHI to Establish Marketing and Design Company in China
For Small/Medium-size Steam Turbines and Marine-use Steam Turbines, Jointly with
Qingdao Jieneng Steam Turbine Group
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.
Mitsubishi Heavy Industries
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