MHI to Establish Centrifugal Chiller Production, Marketing and S

MHI to Establish Centrifugal Chiller Production, Marketing and Service JV in
China, Jointly with Dalian Refrigeration 
Tokyo, Apr 12, 2013 - (JCN Newswire) -  On April 12 Mitsubishi Heavy
Industries, Ltd. (MHI) and Dalian Refrigeration Co., Ltd. (DRC), the largest
manufacturer of screw compressor chillers in China, signed a joint venture
agreement under which the two companies will establish a new company in Dalian,
Liaoning Province, this July. The operation of the JV will include production,
marketing and servicing of centrifugal chillers. With establishment of the JV,
MHI aims to enhance the cost competitiveness of its chillers by securing a
local production base in China, the world's largest market for centrifugal
chillers. Going forward MHI will engage in sales expansion in China through the
new JV, and it also looks to leverage the new unit as a base for aggressively
tapping into the global market. 
The new company, to be named MHI Bingshan Refrigeration (Dalian) Co., Ltd.,
will be capitalized at 80 million yuan (approximately 1.2 billion yen:
converted at 1 yuan = 15 yen), with MHI owning a 55% equity share and DRC
holding the remaining 45%. The JV will be licensed to manufacture MHI's
medium- and large-size centrifugal chillers in China, for which a new 12,000
square meter factory will be newly constructed within DRC's current plant
site in Dalian. The JV plans to launch production in April 2014 and looks to
establish a structure to produce 500 units per year in the near future. 
Initially Mitsubishi Heavy Industries Air-conditioners (Shanghai) Co., Ltd., a
company to comprehensively oversee MHI's air-conditioning and
refrigeration systems business in China, will market and service the chillers,
utilizing its local sales network already in place. MHI also plans to market
the centrifugal chillers manufactured by the JV outside China, mainly in Asia
and the Middle East, through its own sales network, with the intention of
developing the JV in Dalian into a global production base. 
DRC is an affiliate of Dalian Bingshan Group Co., Ltd., a supplier of
air-conditioning and refrigeration systems and equipment for petrochemical
plants. DRC's product portfolio centers on the Bingshan
("iceberg") brand of industrial refrigeration systems. 
MHI's centrifugal chillers deliver the world's highest levels of
refrigeration efficiency and environmental performance, features enabling the
company to enjoy a near 60% share of the Japanese market. However, in order to
further drive sales expansion in major markets around the world, including
China, MHI deemed it necessary to significantly enhance cost competitiveness, a
stance that led to the establishment of the new JV with DRC. 
With the new JV in China playing a central role, going forward MHI looks to
establish globally optimized production and parts procurement structures for
centrifugal chillers, and to enhance their competitiveness as a springboard for
expanding the company's share in the global 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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