Tokyo, December 22, 2017 - Mitsubishi Heavy Industries, Ltd. (MHI) and its wholly owned Group company Mitsubishi Heavy Industries Machine Tool Co., Ltd. (MAT) have reached a basic agreement with JTEKT Corporation to commence discussions toward forming a business partnership, including capital participation, in the field of machine tools and precision tools.

By pooling their respective management resources, the three companies seek to enhance their competitiveness in the market for machine tools and expand their business scale. Their shared aim now is to agree on the conditions necessary to forming a tie-up, and conclude a formal agreement, by July 31, 2018.

Going forward, by integrating their respective areas of proven strength through a formal partnership, MHI, MAT and JTEKT look to pursue synergies in technology, marketing and cost competitiveness, to achieve their further business development.

MAT and JTEKT Company Outlines

Company name	Mitsubishi Heavy Industries Machine Tool Co., Ltd. (MAT)	JTEKT Corporation
Establishment	October 1, 2015	January 1, 2006
Head office(s)	130, Roku-jizo, Ritto, Shiga 520-3080, Japan	Nagoya Head Office:15th Floor, Midland Square, 4-7-1 Meieki, Nakamura-ku, Nagoya 450-8515, Japan Osaka Head Office:3-5-8 Minami-semba, Chuo-ku, Osaka 542-8502, Japan
President	Keiichiro Iwasaki	Tetsuo Agata
Capital	3,000 million yen	45,591 million yen
Businesses	(1) Design, manufacture, sales and consulting services associated with machine tools, cutting tools, and related products (2) Installation, technical guidance, and after-sale services related to the above products	Manufacture and sale of steering systems, bearings, driveline components, machine tools, electronic control devices, etc.
Net sales in FY2016	36,551 million yen (nonconsolidated)	1,318,310 million yen (consolidated)

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