Mitsubishi Heavy Industries Compressor Corporation (MCO) will establish a new company in Brazil in a joint venture with Mitsubishi Corporation (MC), to be known as MHI Compressor do Brasil Ltda. (MCO-B). Creation of the new entity, which will launch commercial operations in February 2016, is targeted at developing the Latin American market for compressors, with a focus on expanding sales of compressors for use in Floating Production, Storage and Offloading systems (FPSO), a market expected to see robust demand as Brazil develops deepwater oil fields. Initially MCO-B will perform sales and after-sale servicing functions, with local manufacturing capability targeted for the future.
MCO-B will be established in December 2015 using part of a factory in Piaracicaba, in São Paulo state, currently operated by NG Metalúrgica Ltda. (NGM), a Brazilian machinery manufacturer in a business tieup with MCO. MCO will have a 70% ownership stake, and Mitsubishi Corporation the remaining 30%. A sales office will be established in Rio de Janeiro.