Shanghai MHI Engine, JV with Shanghai Diesel Engine, Begins Oper

Shanghai MHI Engine, JV with Shanghai Diesel Engine, Begins Operation 
Tokyo, Mar 11, 2013 - (JCN Newswire) -  Shanghai MHI Engine Co., Ltd., a
manufacturer and marketer of diesel engines jointly established by Mitsubishi
Heavy Industries, Ltd. (MHI) and Shanghai Diesel Engine Co., Ltd. (SDEC) - a
major Chinese diesel engine manufacturer - has launched operation. The JV aims
to establish a solid position in the rapidly expanding Chinese market for
industrial-use diesel engines by building up market share through more
competitively priced products. 
To celebrate the commencement of operation, Shanghai MHI Engine today held an
opening ceremony at the company's site in Yangpu District, Shanghai.
Officials and executives attending the ceremony included: Tang Haidong, Deputy
Governor of Shanghai's Yangpu District; Xiao Guopu, Vice President of
Shanghai Automotive Industry Corporation (SAIC); Wang Xiaoqiu, General Manager
of SDEC; Hideaki Omiya, President of MHI; and Atsushi Maekawa, MHI Executive
Vice President and Head of General Machinery & Special Vehicles. 
Shanghai MHI Engine was established this February based on a JV agreement
signed in March last year between MHI and SDEC. The JV is capitalized at 200
million yuan (approx. 3 billion yen), with ownership divided equally between
the two companies. It manufactures industrial-use diesel engines with power
outputs in the 500 to 1,600 kW range under a manufacturing and marketing
license from MHI. Leveraging MHI's advanced technology in industrial-use
diesel engines and SDEC's vast domestic networks in procurement, marketing
and after-sale services, the JV targets annual sales of 10 billion yen within
several years and intends to boost this figure eventually to 20 billion yen. 
SDEC is one of China's leading diesel engine manufacturers and an
affiliate of SAIC, the country's largest automaker. SDEC's 100 to 500
kW high-speed diesel engines for construction machinery, power generation and
marine use hold a large share of the domestic market. 
MHI has for some time been seeking to build up its share in the rapidly
expanding Chinese market, while SDEC has been looking to launch full-scale
entry into the market for industrial-use diesel engines with outputs above 500
kW. The JV commenced operation to fulfill the intentions of both companies. In
tandem with SDEC, MHI will provide support to get the JV's business on
track quickly. 
In China, besides a rapidly growing diesel engine market, distributed power
generation using more environmentally friendly natural gas as fuel is also
expected to expand. However, because the Chinese authorities require a high
level of local content for participation in this market, local production is
indispensable. The new JV is also intending eventually to enter the gas engine
market, and plans call for aggressive pursuit of new market opportunities of
this kind, targeting further expansion of its presence in the Chinese market. 
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. 
Contact: 
Mitsubishi Heavy Industries
Hideo Ikuno
h.ikuno@daiya-pr.co.jp
+81-3-6716-5277 
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