MHI to Integrate Two Engine Businesses Currently Handled

In the current engine market, demand for distributed power generation is increasing globally; simultaneously, the market for gas engines is expected to expand due to aggressive development of shale gas. To respond to these changes, MHI has been pressed to urgently enhance its marketing activities in overseas markets so as to capture this demand, and also to strengthen its after-sale servicing structure within the gas engine market.

Integration of its two engine businesses is part of the company's initiatives to respond to the new market trends. By concentrating its resources in marketing, development and services, MHI aims at maximizing synergy effects. Specifically the company will strengthen its gas-fired distributed power generation system business, including the development of high-power and high-efficiency gas engines; establish business units to handle energy solutions; and conduct full-fledged business activities to provide comprehensive solutions that respond to the recent trends in the energy market. Through these initiatives MHI will meet customers' various needs by proposing comprehensive solutions encompassing not only energy-related equipment but also systems for achieving energy cost reductions and mitigation of environmental burdens.

After the integration, engine business will be overseen by the General Machinery & Special Vehicles business division. Production bases and domestic marketing channels will remain unchanged.

In tandem with the integration move, MHI will continue to build a business structure that offers strength and flexibility to cope with severe changes in the market environment, as a way of further enhancing and expanding its engine business in the coming years.