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HOMENews ReleaseMHI to Launch New Engineering Company --Business Structure Facilitates Rapid Response to Changing Customer Needs and Market Environment--

Press Information

November 02, 2017 No.2089

MHI to Launch New Engineering Company
--Business Structure Facilitates Rapid Response to Changing Customer Needs and Market Environment--

・ New company, "Mitsubishi Heavy Industries Engineering, Ltd.", to launch on January 1, 2018
・ Flat organizational structure will enable flexible deployment of resources and expedited decision making
・ Enhanced QCD (Quality, Cost, Delivery) management to allow flexible handling of domestic and international projects, from large to small-scale

Tokyo, November 2, 2017 - Mitsubishi Heavy Industries, Ltd. (MHI) will launch a dedicated engineering company on January 1, 2018, to be named Mitsubishi Heavy Industries Engineering, Ltd. The new company is structured to efficiently utilize MHI's strengths in project management and engineering. It will deploy technological, business and human resources to respond swiftly and flexibly to changes in the market environment and customer needs.

The new company, to be formed under an absorption-type split, will take over MHI's engineering businesses relating to chemical plants, transportation systems and environmental technologies. Shigehisa Kobayashi will serve as the new company’s inaugural President and CEO.

In April 2016 MHI established a new Engineering Headquarters that brought together all engineering-related operations. The move reinforced MHI's response capability for large-scale complex systems across the Company's product portfolio, making optimal use of MHI's engineering capabilities and resources cultivated through operation of chemical plants, transportation products and environmental technologies. The Engineering Headquarters has sought to enhance engineering operations through horizontal coordination across MHI's other business segments. With the launch of the new company, measures will be implemented to strengthen these initiatives further.

To facilitate prompt decision making, Shigehisa Kobayashi will adopt a flat organizational structure with clear allocation of responsibilities and authority. The new entity will enhance QCD (Quality, Cost, Delivery) management and improve response to risks and changes in customer needs, both for individual products and total systems. It will also provide a high degree of resilience and flexibility for projects of all scales, both in Japan and globally. The new company will develop systems to manage various contract types specific to engineering. Further, it will expand its EPC (Engineering, Procurement and Construction) business areas, both upstream and downstream, by taking an active role in O&M (Operation & Maintenance) activities and business equity participation. The new company will also strengthen core transportation technologies, such as rolling stock, signaling and communications, while developing competitive offerings for the global transport infrastructure market.

Going forward, MHI will continue to apply its Groupwide engineering methods and expertise in cross-organizational efficiency, working closely with the new company and providing all-round support to its business activities.

Profile of the New Company
Name Mitsubishi Heavy Industries Engineering, Ltd.
Head office Mitsubishi Heavy Industries Yokohama Bldg., 3-1, Minatomirai 3-chome, Nishi-ku, Yokohama, Kanagawa Pref.
President & CEO Shigehisa Kobayashi
Business scope Engineering, manufacture, procurement, construction, marketing and after-sale servicing of chemical plants, transportation systems and products, environmental products, etc., including ancillary businesses
Capital 20,000 million yen (MHI: 100%)
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