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MHI to Establish Marketing and Design Company in China
For Small/Medium-size Steam Turbines and Marine-use Steam Turbines,
Jointly with Qingdao Jieneng Steam Turbine Group
For Small/Medium-size Steam Turbines and Marine-use Steam Turbines,
Jointly with Qingdao Jieneng Steam Turbine Group
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Tokyo, January 15, 2013 - Mitsubishi Heavy Industries, Ltd. (MHI) has signed an agreement with Qingdao Jieneng Steam Turbine Group Co., Ltd. of China, a major manufacturer of small steam turbines, under which the two companies will jointly establish Mitsubishi Heavy Industries Jieneng (Qingdao) Steam Turbine Co., Ltd. as a marketing and design unit for small and medium-size steam turbines and marine-use steam turbines. Through establishment of the JV, MHI aims to strengthen its competitiveness in a quest to expand its global market share. The JV is slated to begin operation in March 2013.
Through the JV, MHI plans to license pertinent turbine technology to Qingdao Jieneng Steam Turbine Group. The JV will pursue the sales expansion of the turbine manufactured by Qingdao Jieneng Steam Turbine Group.
MHI has been looking to fortify its global business structure to attract more orders and at the same time evade currency exchange risks. Qingdao Jieneng Steam Turbine Group has been seeking expansion into markets for medium-size steam turbines and marine-use steam turbines. The intentions of the two companies thus meshed and led to the agreement on the JV's establishment.
Qingdao Jieneng Steam Turbine Group is a well-established turbine manufacturer founded in 1950. The company manufactures approximately 500 units annually, mostly small steam turbines below 60MW. It has some 2,300 employees, is focused on steam turbines for use in factories and power generation, and enjoys a considerable market share. It also enjoys an abundant track record in deliveries to the Asian markets, especially Indonesia and India.
Going forward the JV will introduce globally competitive products into the Asian markets leveraging the combined capabilities in development and manufacturing of its two parent companies, and conduct aggressive marketing activities. MHI intends to optimize on its new JV as a way of expanding its own market share. MHI also plans to maintain and further develop its solid collaborative relationship with Qingdao Jieneng Steam Turbine Group while fully supporting the new JV's business development.
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.