MHI to Spin Off Small-scale Gasoline Engine Business

MHIM will launch via an absorption-type split, evolving out of a preparatory company already established as a wholly owned subsidiary of Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. (MHIET), which in turn is wholly owned by Mitsubishi Heavy Industries Forklift, Engine & Turbocharger Holdings, Ltd., an MHI Group company. MHIM will integrate the functions of the Meiki Engines' technical development currently performed by MHIET and the engine production, marketing and servicing functions now conducted by Mitsubishi Heavy Industries Engine Systems Co., Ltd. (MHIES), a wholly owned subsidiary of MHIET. MHIM will initially be capitalized at 300 million yen, with head office in Nagoya. Hiroshi Sugita, currently General Manager of MHIES's Meiki Engine Production Division, will be MHIM's inaugural president and CEO.

Production of Meiki Engines began in 1946 in Nagoya. The wide-ranging Meiki Engines product lineup, is especially popular for agricultural use. In recent years, as production of gasoline engines has increasingly shifted overseas, Meiki Engines has built a robust track record serving the Japanese market as an OEM.

With the establishment of MHIM there will be increased focus on improving operating efficiency and speed of management decisions. By continuously improving technological capabilities, shortening delivery times, and elevating quality levels, the new company will further enhance the brand value of Meiki Engines as a lineup of domestically produced small-scale air-cooled gasoline engines.

Going forward, MHI will work closely with MHIM and offer all-around support to the new company's business development.