MHI Establishes New Subsidiary to Oversee All Business in China

MHIC, capitalized at US$31 million, is a wholly owned subsidiary of MHI. Kenji Yuasa, formerly MHI's General Representative in China, has been appointed as General Manager. MHIC initially started with 14 employees, including office staff assigned to a Shanghai branch opening in February.

With MHIC's head office located in the Chinese capital, where central government offices and the decision-making organizations of the major state-owned companies are concentrated, MHI will further strengthen its company-wide engagement in Chinese business, encompassing its entire business organization. Working closely with respective departments at MHI's head office in Tokyo, including the Sustainability Energy & Environment Strategic Planning Department, MHIC will effectively gather business information throughout China and increase its business opportunities in large-scale projects, such as urban development, energy and the environment, by offering business models incorporating its comprehensive capabilities. Plans further call for MHIC to set up liaison offices in China's interior regions, where high economic growth is expected. This move aims to create a structure that will enable prompt acquisition of local information through establishment of the subsidiary's own information network spanning from the coast to inland.

MHIC's Shanghai office will mainly engage in corporate management and administrative functions such as accounting, legal affairs, material supplies and general affairs. In addition to providing these services to MHI group companies in China, especially those in the country's eastern and southern sectors, the office will provide information concerning matters peculiar to China in the areas of legal concerns, tax practices and finance; it will also assist in the creation of a supply chain network and the establishment of new companies in China. In the future, plans call for the office to contribute to the expansion of group companies through managerial support, such as concentrated management of funds, and to secure sound operation throughout the group by enhancing corporate governance.

MHI began its full-fledged entrance into the Chinese market in the 1980's. By establishing MHIC as a company charged with overseeing all business conducted in China, MHI now expects to further enhance its presence in this country destined to mark sustained high growth, and also looks to continue contributing to the realization of an affluent society in China through its local business activities.

BUSINESS CONTACT:Global Strategic Planning & Operations Headquarters