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MHI to Split off Part of Manufacturing, Quality Assurance and Procurement Functions in its Industry & Infrastructure Domain to its Group Companies
MHI to Split off Part of Manufacturing, Quality Assurance and Procurement Functions in its Industry & Infrastructure Domain to its Group Companies
No.2064
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Tokyo, May 24, 2017 - Mitsubishi Heavy Industries, Ltd. (MHI) will split off part of its Manufacturing, Quality Assurance and Procurement Functions in its Industry & Infrastructure Domain to Mitsubishi Heavy Industries Mechatronics Systems, Ltd. (MHI-MS), a group company of MHI and a small and medium industrial machinery business integration company to be established on October 1, 2017 as a surviving company of MHI-MS (hereinafter, "Integration Company").
1. Purpose of the Company Split
As a measure to strengthen the small and medium industrial machinery business, as of October 1, 2017 the MHI Group will integrate the rubber and tire machinery businesses (hereinafter, the "Integration") of the Group companies MHI-MS, Mitsubishi Heavy Industries Printing & Packaging Machinery, Ltd. (MHI-PPM) and Mitsubishi Heavy Industries Machinery Technology Corporation (MHIMT). Through the Integration, MHI seeks to promote financial stability and resistance to economic fluctuations, promote mobilization of human resources, distribute flexible resources among a wide range of businesses, and reduce fixed costs, aiming to establish a structure that can maintain stable business size and profit over the medium to long term.
In addition to this Integration, by splitting off the manufacturing, quality assurance and procurement functions of the businesses to be integrated from MHI to MHI-MS and the Integration Company, which will be the surviving companies after the Integration, MHI seeks to unify supply chains and strengthen its business structure.
In addition to this Integration, by splitting off the manufacturing, quality assurance and procurement functions of the businesses to be integrated from MHI to MHI-MS and the Integration Company, which will be the surviving companies after the Integration, MHI seeks to unify supply chains and strengthen its business structure.
2. Company split summary
a. Businesses to be split
a. Businesses to be split
- Manufacturing, quality assurance, and procurement functions related to printing machines, paper machines, particle accelerators, and business incidental thereto.
- Procurement functions related to rubber and tire machinery and related businesses.
- Manufacturing functions related to food packaging machinery and business incidental thereto.
b. Summary of succeeding company for 1. and 2.
| Name | Mitsubishi Heavy Industries Mechatronics Systems, Ltd. |
|---|---|
| Address | 1-1, Wadasaki-cho 1-chome, Hyogo-ku, Kobe 652-8585, JAPAN |
| Representative | President Tadashi Nagashima |
| Business areas | ITS: Toll collection systems, ETC systems and other ITS-related equipment. Hydraulic Machinery: Hydraulic components, Deck machinery, Deck cranes, and other hydraulic / mechanical equipment. Machinery Systems: Testing equipment, Inspection systems, Cultural / Sports facilities, Space equipment, Thermal plant, System controllers, Electronic control equipment, Particle accelerators, Penstocks, and other industrial & general purpose mechanical equipment. Mechanical Parking Systems: Mechanical parking facilities and other transfer systems. Steel Structure Plant: Industrial chimneys, Seismic isolation / Vibration control systems, Gas holders, Steel pipes, etc. Food & Packaging Machinery: Food machines, Packaging machines and other peripheral equipment. |
| Capital | 1.06 billion JPY |
| Employees | 1,327 (As of April 2017) |
| Sales | 89.526 billion JPY (March 2017 period) |
| Major shareholders and shareholding ratios | Mitsubishi Heavy Industries, Ltd. 100% |
c. Summary of succeeding company for 3.
| Name | Unconfirmed (Integration Company) |
|---|---|
| Address | 1-1, Wadasaki-cho 1-chome, Hyogo-ku, Kobe 652-8585, JAPAN |
| Representative | Unconfirmed |
| Business areas | ITS: Toll collection systems, ETC systems and other ITS-related equipment. Hydraulic Machinery: Hydraulic components, Deck machinery, Deck cranes, and other hydraulic / mechanical equipment. Machinery Systems: Testing equipment, Inspection systems, Cultural / Sports facilities, Space equipment, Thermal plant, System controllers, Electronic control equipment, Particle accelerators, Penstocks, and other industrial & general purpose mechanical equipment. Mechanical Parking Systems: Mechanical parking facilities and other transfer systems. Steel Structure Plant: Industrial chimneys, Seismic isolation / Vibration control systems, Gas holders, Steel pipes, etc. Food & Packaging Machinery: Food machines, Packaging machines and other peripheral equipment. Printing and Paper Converting Machines: Printing machinery, Paper Converting machinery, etc. Rubber / Tire Machinery: Rubber kneading machines, Tire vulcanizers, etc. |
| Capital | Unconfirmed |
| Employees | Unconfirmed |
| Sales | 133.143 billion JPY (March 2017 period) * |
| Major shareholders and shareholding ratios | Mitsubishi Heavy Industries, Ltd. 100% |
* Total of MHI-MS, MHI-PPM and MHIMT's rubber and tire machinery businesses
d. Schedule for company split (planned)
| Contract signing date | 1. and 2. July 28, 2017 3. Mid July 2018 |
|---|---|
| Planned implementation date (effective date) | 1. and 2. October 1, 2017 3. October 1, 2018 |
e. Others
Further details will be released as they are confirmed.
3. Future outlook
The impact of this company split on MHI's consolidated and non-consolidated earnings is minimal.
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.