Operations to Launch at Mitsubishi Nichiyu Forklift Co., Ltd.,

The new entity is formed through a spin-off of MHI's forklift truck business and integrated into Nichiyu. Launching under a new corporate name, the new entity is capitalized at ¥4.89 billion. Its headquarters is located in Nagaokakyo City in Kyoto Prefecture, where Nichiyu's head office is situated. Its operations will get under way with approximately 5,000 employees. Hideaki Ninomiya, current president of Nichiyu, will be the first president of the new entity.

Through the integration of MHI and Nichiyu's forklift businesses, the new entity is now positioned to pursue an enhanced product lineup, which was limited under the earlier partial collaborative arrangement between the two companies. Other targets include sharing and optimization of sales routes, efficient development of products matching market needs, and optimization of raw material procurement and production. In addition to the technological capabilities, marketing skills and strong service network for forklifts and other logistics equipment cultivated by Nichiyu throughout its history, the new entity will benefit from MHI's comprehensive group capabilities. Together, these will form the base for the new entity to pursue greater global competitive strength.

By integrating the development technologies of MHI and Nichiyu and pursuing expansion into new business areas, Mitsubishi Nichiyu Forklift Co., Ltd is poised to achieve unprecedented speed in strengthening business operations and developing growth areas. The immediate target is to grow and become a member of the third largest group of companies in the forklift truck business, and ultimately become a leading company in this business on global scale.