MHI to License KU Gas Engine Technologies to ZGPT of China
Looking to Enter the Local Market for Gas-fired Distributed Generation
Tokyo, Apr 10, 2013 - (JCN Newswire) - Today Mitsubishi Heavy Industries, Ltd.
(MHI) concluded an agreement with ZGPT Diesel Heavy Industry Co., Ltd. (ZGPT),
a Chinese manufacturer of stationary and marine engines, under which MHI will
license its KU gas engine technologies to ZGPT. The move is targeted in the
near term at seeking further penetration of the KU gas engines in the Chinese
market as that market continues to mark robust growth, and beyond the near term
at entering the local market for gas-fired distributed power generation system,
a niche that is expected to greet sharp expansion in demand going forward.
The newly concluded licensing agreement pertains to manufacture and marketing
of MHI's 14KU30GSI 4,450 kilowatt (kW) class gas engine. Plans call for
expansion of licensed model variations once business relating to the 14KU30GSI
gets firmly on track.
China has a plan to introduce a total of 50 gigawatts (GW) natural gas-fired
distributed generation systems by 2020. However, because the country is
promoting domestic production, local production is indispensable. Until now MHI
has been seeking market entry through acquisition of a production base for its
KU gas engines, while ZGPT has sought to add competitive gas engines to its
lineup. The aims of the two companies have thus meshed in reaching the new
ZGPT, which is based in Hangzhou and established in 2005, is a major company
dedicated to engine related business, and undertakes the manufacture, sale and
servicing of land- and marine-use diesels. MHI licensed medium-speed diesel
engine technologies to ZGPT in November 2010 and has established a positive
relationship with the company.
The KU engines are one of MHI's best-selling products, offering the
world's highest levels of power generation efficiency in their class and
outstanding environmental compatibility. Since delivery of the first unit in
1986, engines in the series have been widely adopted both in Japan and abroad
as power generators for large-scale factories, co-generation systems and
independent power provider (IPP) plants. They hold the top share of the
Japanese domestic market.
Going forward, MHI looks to maintain and further develop its solid
relationship with China and to increase the KU engines' share within the
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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