MHI to Establish "Integrated Defense & Space Systems Planning Department,

The new unit will have about 10 staff members divided into three groups respectively focusing on Planning, Integrated Defense Systems planning and Business Development. The unit will be overseen by Takashi Kobayashi, Executive Vice President, who will take charge of the Defense & Space Systems Planning effective January 1. Takuro Matsumoto, General Manager of Planning & Administration Department, Aerospace Systems, will serve as the unit's General Manager.

MHI's defense-related business has until now spanned across three different divisions: vessels by the Shipbuilding & Ocean Development, fighters, helicopters and guided weapon systems by the Aerospace Systems and battle tanks by the General Machinery & Special Vehicles. MHI took the decision to unify the management of these three defense-related businesses in order to efficiently support joint operations by the Ground, Maritime and Air Self-Defense Forces, as well as to further enhance security and transparency.

The new unit, working in collaboration with the three business divisions, will take up a variety of issues, among them: determination of the system best suited to comprehensive management of defense-related businesses; creation of a business strategy for integration of defense businesses and maximization of integration effects; utilization of space for defense purposes; and exploration of new business arising from relaxation of Japan's "Three Principles on Arms Exports."

In its 2012 Medium-Term Business Plan, a comprehensive three-year plan launched this fiscal year, MHI set a basic policy calling for full utilization of its strengths and synergy effects through consolidation and restructuring of all operations into four business domains - "Energy & Environment," "Machinery, Equipment & Systems," "Transportation" and "Defense & Space" - in a quest for business scale expansion. Establishment of the "Integrated Defense & Space Systems Planning Department" falls in line with this initiative.

MHI has contributed to Japan's defense in every area including land, maritime, and air defense through the development, manufacture, operational support and upgrade of equipment based on the leading-edge technologies. Going forward the company will continue to respond to the requests from the Ministry of Defense and Self-Defense Forces, including the efficient support of their joint operations, and maintain a strong defense industrial base in order to contribute proactively to Japan's national security.