Agreement Concluded to form Joint Venture with Major Local Partner Firm in Turkey

Tokyo, January 31, 2019 - Mitsubishi Heavy Industries Thermal Systems, Ltd., a Group company of Mitsubishi Heavy Industries, Ltd. (MHI), has concluded an agreement with the shareholders of Form VRF Sistemleri Sanayi ve Ticaret A.Ş., a Group company of Form Group, having manufacturing and sales and service facilities for heat pumps and air-conditioners in Istanbul, Turkey, to establish a joint venture to provide sales and servicing for air-conditioning and refrigeration systems. The aim of the joint venture is to strengthen the sales network in Turkey through close cooperation between the two corporate groups, and substantially increase their market share in the country, for MHI Thermal Systems' product of split type Residential Air Conditioners (RAC) & Packaged Air Conditioners (PAC), and VRF (Variable Refrigerant Flow) multi-air conditioning systems.

The joint venture, which will be called Form MHI Klima Sistemleri Sanayi ve Ticaret A.Ş., is projected to establish in April. Mitsubishi Heavy Industries Air-Conditioning Europe, Ltd. (MHIAE), a wholly-owned subsidiary of MHI Thermal Systems that handles sales and servicing of air conditioners and heat pump water heaters in the European market, will acquire a portion of the shares in Form VRF Sistemleri Sanayi ve Ticaret A.Ş., a Form Group company and local agent for MHI Thermal Systems' air conditioners since 2011.

The joint venture will be headquartered in Turkey's largest city of Istanbul, with sales offices in the major cities of Ankara, Izmir, Bursa, Antalya, and Adana, comprising a structure covering the whole of the country. Form MHI Klima Sistemleri will integrate Form Group's advanced technical sales forces and broader customer network with the MHI Group's technical capabilities, and work to expand the business.

MHI Thermal Systems, by offering in a timely fashion high-efficiency products and products with exceptional environmental loading reduction performance utilizing the natural refrigerant CO₂ and other systems for the Turkish market, where environmental regulations are of a similar standard to Europe, will strengthen its market competitiveness while contributing to the prevention of global warming.

VRF type air conditioner (KXZ series)

Commercial type air conditioner (FD series)

Residential type air conditioner (SR series)

Commercial use heat pump for hot water (Q-ton)