Subsidiaries of Sumitomo Heavy Industries, Ltd. and Mitsubishi Heavy Industries, Ltd. Conclude Absorption-Type Company Split Agreement for Industrial Crane

　The crane business in Japan, despite being subject to highly variable market conditions in the short term depending on the type of equipment, has been affected by a long-term contraction in the harbor, shipbuilding, iron and steel, and electric power industries domestically. This situation requires that the business meet the demands of a mature market. On the other hand, while tending towards growth in some areas, particularly in Asia, the crane business overseas continues to face severe competition with overseas companies, underscoring the important need to be selective and show differentiation in these markets.
Given this situation, SHI Material Handling Systems and MHI Machinery Technology have decided to pool their resources to increase their competitiveness in crane equipment, their area of expertise.
With this absorption-type company split, the two companies will enhance their lineup of equipment types and services, while at the same time merging their technical skills and know-how. Together with a more efficient allocation of managerial resources, these measures will allow the two companies to strengthen their ability to meet the demands of the Japanese market. In addition, by investing in efforts overseas and in new products and businesses, all of which are essential to future growth, the two companies aim to maintain competitiveness in the crane business.

1) Description of business included in this absorption-type company split 2) Method for the absorption-type company split