MHI-MME to Take Over Production of MET Turbochargers Factory in Nagasaki will be Relocated

◆ Dynamic business format to be achieved through fully integrated system encompassing development, manufacture and after-sale servicing

◆ Greater market focus and enhanced customer satisfaction will be pursued in quest for business expansion

Tokyo, September 18, 2019 - Effective January 1, 2020, Mitsubishi Heavy Industries Marine Machinery & Equipment Co., Ltd. (MHI-MME), a group company of Mitsubishi Heavy Industries, Ltd. (MHI) based in Nagasaki, will take over production of MET turbochargers from Mitsubishi Hitachi Power Systems, Ltd. (MHPS), which until now has performed their manufacture on MHI-MME's behalf. The shift is part of MHI Group's consolidation of its manufacturing bases, and by relocating the MET turbochargers' production plant from Saiwaimachi to Akunouramachi--both in Nagasaki City--the MET turbochargers' production function will be absorbed by MHI-MME. As a result, MHI-MME will become responsible for all related processes, from product development to manufacture and after-sale servicing. With this dynamic new business format in place, the company will pursue business expansion through more focused marketing and enhanced customer satisfaction.

MHI-MME was launched in October 2013 as a wholly owned MHI Group company. To date its functions have encompassed the development, design, sale, after-sale servicing and licensing of marine diesel engines, marine boilers and turbines, turbochargers, marine auxiliary machinery and steering gear. The company has also handled marketing of marine machinery and related equipment designed and manufactured within MHI Group. Up to now MHI-MME has exclusively performed development, design, sales and servicing functions; manufacturing has been delegated to other MHI Group affiliates.

With the upcoming shift of MET turbocharger production from MHPS to MHI-MME, a new factory will be completed this December on the premises of MHPS's turbine plant. Production-related equipment and personnel will be transferred to the new location, and new sections in charge of production and production control will be newly created in-house.

MET turbochargers were initially launched in the 1960s as a differentiation technology of MHI Group responding to calls for higher engine output and greater efficiency. In a MET turbocharger, engine exhaust gas is recovered by a turbine and used to drive a compressor, forcing combustion air to be fed to the engine. Through the years, proprietary innovations have been continually made to this system, resulting in ongoing improvements to the lineup.

Following the factory relocation and switch to internal production of the MET turbochargers, MHI-MME will strive to grab their top market share by further improving their performance and reducing their size and weight. In addition the company will focus on expanding sales of turbochargers for both two- and four-stroke engines, and also dedicate its resources to developing the global market.