Three Group Companies in Machinery and Steel Structures Businesses to Merge into Newly Launching Company New "Mitsubishi Heavy Industries Mechatronics Systems" to Debut April 1st

The new company will be launched with MHI-MS, whose operations currently involve mechanical and environmental systems and equipment, as the surviving enterprise. MHI-P, which deals in mechanical parking systems, will be absorbed, and the steel structures operations of MBE, which now does business in that area as well as in bridges, will be split off and taken over by the new company. MHI-MS's corporate name will be retained. The new company will be capitalized in the amount of 1 billion yen, with operations launching with a workforce numbering approximately 1,100. The head office will be in Kobe, and major operating bases will be set up in the Minatomirai and Kanazawa districts of Yokohama. MHI-MS president Nozomu Watanabe will serve as the new company's president.

Because the business operations of the three merging entities share similar markets and customers – notably in the construction, electric power, and iron & steel industries – the new company will focus on developing packaged proposals for shared customers and on strengthening after-sale servicing structures. At the same time, the supply chains presently held by the three entities will be revamped and integrated into one, in a quest to boost cost competitiveness through lower procurement costs, provide products of even higher added value, and improve product servicing capabilities. In addition, initiatives will be taken to integrate resources and expertise relating to controls and construction work. By combining the technologies now held by the three merging partners, going forward the new company will seek to further develop existing markets and to cultivate new markets and new business areas.

MHI will work closely with the new company and lend its full support to its business development.