MHI to Launch Mitsubishi Heavy Industries Machinery Technology Corporation on April 1:

The pertinent businesses of MHI's Machinery & Steel Infrastructure Systems business headquarters will be succeeded by MEC, a wholly-owned MHI subsidiary, through a company split effective April 1. On the same day, Hiroshima Ryoju Engineering Co., Ltd., and Ryosen Engineers Co., Ltd. will merge with MEC. MEC will also change its name to Mitsubishi Heavy Industries Machinery Technology Corporation on the day. The new company capitalized at 1,000 million yen will locate its head office in Nishi-ku, Hiroshima City, and will mainly handle marketing, design, manufacturing, installation and after-sale services for machineries such as material handling systems, rubber & tire machinery, upstream equipment in iron-making and chemical industry-use machinery. Kazuo Iida, currently president of Ryosen Engineering will serve as the president of the new company.

The new company will promote to shift the production of the material handling systems and rubber & tire machinery concerns to overseas to allow domestic operations to focus on the enhancement of marketing and engineering capabilities. For the upstream equipment in iron-making, the company will focus on development and accelerate commercialization of related products. In chemical industry-use machinery, they will strengthen design capability and expand the production of large-sized chemical machinery and heat exchangers.

MEC, an engineering company, mainly operates businesses to do with material handling systems, control systems and marine related products, including after-sale services. Hiroshima Ryoju Engineering deals with the welding and assembly of rubber & tire machinery and large-sized can products, and Ryosen Engineers has been handling detail design and structural design of material handling systems and others. At present these three companies are wholly-owned subsidiaries of MHI.

MHI's Machinery & Steel Infrastructure Systems business headquarters has been promoting consolidated management by separating business from MHI and establishing companies dedicated to the respective businesses such as the iron-making machinery business in 2000 and the compressor business in 2010. The latest company split is in line with the initiative to integrate the various functions separately handled by MHI's divisions and group companies into one with the aim of conducting speedy and effective business operations by eliminating duplicative work.

MHI will closely liaise with the new company and fully support its business development.