MHIET Receives Order for 147 Diesel Gensets to Serve as Stand-alone Power Systems in Indonesia -- Units Destined for 22 Districts on Kalimantan and Sulawesi --

August,30 2017 No.001

Tokyo, August 30, 2017 - Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. (MHIET), a Group company of Mitsubishi Heavy Industries, Ltd. (MHI), has received an order for 147 units of its MGS Series gensets, the core lineup in the company's diesel power plant offerings, from PT PLN (Persero), a state-owned electricity provider in Indonesia. The gensets are to serve as stand-alone power systems, a mode of power supply especially useful in Indonesia, a country comprising thousands of islands. Plans call for the units to progressively go into service in 22 districts of Kalimantan and Sulawesi by mid-2018.

The gensets on order are the MGS1500C, the central offering in MHIET's MGS Series lineup. They provide a continuous output of 1.2 megawatts (MW), and due to their high-speed operation, their engines are small in size and light in weight for units delivering output of this scope. As a result, a large number of the MGS1500C gensets can be installed within a limited area of space-one of their foremost benefits for their users.

Manufacture and shipment of the 147 engines on order will be completed by the end of September. In Indonesia, Mitsubishi Heavy Industries Engine System Asia Pte. Ltd. (MHIES-A), a wholly owned MHIET subsidiary that markets and assembles engines and power systems within the Asia region, will procure the necessary generators and other related equipment and components. After all sets have been completed, PT Berkat Manunggal Jaya (BMJ), the local dealer for MGS Series finished gensets, will install gensets and perform test operations at 19 Kalimantan districts and 3 Sulawesi districts, followed by formal delivery to PLN. After the units go into commercial operation, MHIET will provide remote monitoring services for all installations from its Head Office in Sagamihara (Kanagawa Pref.), relying on ICT (information and communication technology).

Indonesia is a nation of more than 13,000 islands straddling the Equator, and there are numerous regions where it is difficult to supply electricity from a large-scale power station over a long distance. The country stands to benefit, however, from abundant availability of oil resources to serve as diesel fuel, and for this reason PLN is focusing on supplying power to residents using diesel-based stand-alone generators. MHI supplied diesel gensets to PLN even before MHIET was spun off as a Group company, and to date more than 600 units have been delivered, reaching peak volume between 2008 and 2012. The latest order was placed in reflection of the high acclaim garnered through this robust track record.

MHIET is a wholly owned subsidiary of Mitsubishi Heavy Industries Forklift, Engine & Turbocharger Holdings, Ltd. (M-FET), which itself is a wholly owned MHI Group company launched in March 2016. MHIET commenced commercial operations in July 2016, taking over MHI's engine and turbocharger businesses as well as operations involving the MGS Series and other diesel gensets.

Going forward, MHIET will continue devoting its resources to promoting the adoption of even more efficient compact diesel power plants, as a way of contributing to economic development and more comfortable living in regions around the world where stable power supply is difficult and stand-alone power systems are necessary.