MCO to Establish Subsidiary in Saudi Arabia


Mitsubishi Heavy Industries Compressor Corporation (MCO) will establish MCO Saudi Arabia, LLC. (MCOSA), which will undertake after-sale service activities in the Middle East region, targeting its operation commencement on July 1. The establishment of the subsidiary in Saudi Arabia is aimed at further enhancing MCO’s after-sale service structure in the country, to which more than 200 MHI compressors and mechanical drive steam turbines have been delivered. The new company will also function as a marketing and service base to cover the entire Middle East region.

MCOSA will be established as a joint venture between MCO and Mitsubishi Corporation (MC) capitalized at 1 million Saudi Riyals, or approximately 24 million yen. MCOSA will initially launch operations with 10 staff members, including Hoju Kobayashi, currently a senior staff member at MCO’ Middle East Office, in the position of president.

The new company, which will handle maintenance and inspection of compressor/turbine equipment, will be located in Al Khobar, a city on the east coast, along the Persian Gulf. MCOSA will provide services not only in Saudi Arabia, where these major customers are located, but also within the entire Middle East region, including the United Arab Emirates and Qatar.

The establishment of MCOSA not only meets MCO’s own needs but also satisfies the demand for a transition to localized operation under the country’s “Saudization” drive, a national policy that encourages employment of Saudi nationals as a means to expand employment opportunities among the country’s young people.

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