MHI to Establish Power System Engineering Subsidiary in Austria

The establishment of MHI Engineering Vienna is part of MHI's strategy to expand the globally operated business, which was put forth in the company's 2010 Medium-Term Business Plan. The activities of the new company, to be a wholly-owned subsidiary of Mitsubishi Power Systems Europe, Ltd. (MPSE), will cover Europe and nearby countries. MPSE is an MHI subsidiary in London that oversees the company's power systems business in Europe. MHI Engineering Vienna will be capitalized at €1 million and will initially launch operations with about 25 staff members.

For exploration of new power generation projects and their order-taking activities, MHI Engineering Vienna will conduct activities jointly with MPSE and propose EPC solutions suited for the needs of customers in the European region, leveraging the abundant experience of local engineers. The new company will procure material and equipment from European power plant equipment manufacturers for the projects of the company's power systems business not only in Europe but in the world. MHI Engineering Vienna will leverage its engineering capabilities to enable fully optimized equipment procurement from local companies. Plans call for the new company in the future to function as a procurement base for the entire spectrum of MHI's business area.

While the European GTCC power generation market has yet to pick up due to the sagging economy and policies focused on renewable energy, the move to introduce the GTCC power generation system is gaining momentum for the replacement of aged coal-fired thermal power plants and as an alternative to nuclear power. In Turkey and Poland, neighboring countries of Europe, business talks for GTCC plant construction have already been increasing along with their early economic recovery. The new company will focus on capturing these demands for GTCC systems.

MHI has been accelerating the global business expansion and positions the establishment of MHI Engineering Vienna as a model case of the company's power systems business localization in major markets. Taking this opportunity, MHI will further enhance local engineering sources and intends to expand the power generation system business.