Press Information

MHI to License Marine Boiler Manufacturing and Marketing
To State-owned Jiujiang Haitian Equipment Manufacture of China

No.1414
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Tokyo, March 28, 2011 - Mitsubishi Heavy Industries, Ltd. (MHI) and Jiujiang Haitian Equipment Manufacture Co., Ltd. (JHT), a state-owned major marine equipment manufacturer in China, have signed an agreement under which MHI will license marine boiler* technologies to JHT. JHT has been looking forward to acquiring marine boiler manufacturing technology from MHI for some time, while MHI has hoped to achieve greater penetration by its marine boilers into China's robustly expanding shipbuilding market. In this way, the new agreement meshes the aspirations of both companies. JHT plans to complete and deliver its first large-sized marine boiler in 2012.

Based on the agreement MHI will license manufacturing, marketing and after-sale services for four types of marine boilers featuring evaporation capacities ranging from 2 to 55 tons per hour. These include the "MC-D," "MCC" and "MAC" series plus MHI's exhaust-gas heat recovery steam generators.

JHT, established in 1970 and headquartered in Jiujiang, Jiangxi Province, is a marine equipment manufacturing affiliate of China State Shipbuilding Corporation (CSSC), China's largest shipbuilding group. JHT mainly produces pressure vessels for marine use with a staff of approximately 800 employees. The company is currently building a new plant with capacity to produce 120 units of large-sized marine boilers per year; plans call for construction to be completed within this year.

Marine boilers are one of MHI's major marine-use machinery products. MHI has abundant experience and a solid track record in boiler production tracing back to completion of the first unit in 1885; the company marked a major milestone in 2007 with production of its 5,000th boiler. MHI's boilers feature superior durability and are designed for easy inspection and maintenance. They are available in a wide range of evaporation capacities to satisfy a broad array of customer needs, and they incorporate enhanced environmentally friendly features, including ultra-low sulfur fuel burning technology, to cope with today's tightening emission regulations.

Through the licensing arrangement with JHT, marine boilers with the Mitsubishi brand name will now be preferentially installed in vessels to be built at CSSC's group-affiliated shipyards. MHI, after getting this important foothold in China, will now further accelerate its local market development initiatives.

Note: Marine boilers are used to produce steam necessary to drive cargo pumps in tankers, to serve as power source of propulsion systems, and to meet various inboard heat-energy needs such as heating and hot water supply.