MHI to Establish Financial Subsidiary in US

The new company, MHI Capital America, Inc. (tentative name), will be capitalized at US$400 million and will carry out cash management and integrated financing for group companies, information gathering on financial market, and other finance-related activities that are currently being handled by Mitsubishi Heavy Industries America, Inc. (MHIA).

Since last year MHI has been working on building up an integrated global financial management system in order to improve the financial standing of MHI group and efficiency of capital. As the first step, MHI started cash management in the US, China and Europe, as it does in Japan, with its regional headquarters, such as MHIA, acting as administrative agent. As a result, MHI has reduced interest-bearing debt in the US and has ensured smooth financing operations in China despite that country's current monetary tightening. However, in order to create a truly global financial management system, MHI has seen the need for a new company specializing in such finance operations instead of those regional headquarters.

Going forward, MHI will work to have these financial subsidiaries coordinate with each other and create system to provide the financial expertise and supports needed by the company's rapidly expanding global business operations.