Press Information

Mitsubishi Heavy Industries Plastic Technology Ties Up
With Chen Hsong Group in Large-sized Injection Molding Machines
To Aggressively Explore Emerging Markets through Production in China

No.1415
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Tokyo, March 29, 2011 - Mitsubishi Heavy Industries Plastic Technology Co., Ltd. (MHI-PT), an injection molding machinery subsidiary of Mitsubishi Heavy Industries, Ltd. (MHI), and Chen Hsong Group of Hong Kong (Chen Hsong), a major injection molding machine producer in China, have signed an agreement under which the two companies will collaborate in the area of large-sized hydraulic injection molding machines.

Under the tie-up agreement, MHI-PT will design the "MMX series" - high-quality, low-cost, energy-saving large-sized hydraulic injection molding machine lineup optimized for market needs in the emerging economies - and OEM production of the series will be consigned to Chen Hsong for marketing under the MHI-PT brand. In tandem with the OEM arrangement, MHI-PT will also license production and sales of same-platform machines to Chen Hsong, to be supplied under the Chen Hsong brand. The tie-up partners plan to launch the first OEM machines within the next six months, and to expand the lineups of both OEM and licensed machines progressively.

Through collaboration with Chen Hsong, MHI-PT will produce its own brand MMX series in China leveraging Chen Hsong's outstanding production capability and local supply chain. The OEM initiative will enable MHI-PT to maintain and further strengthen its competitiveness even amidst the strong yen.

Chen Hsong has one of the world's largest production capacities among injection molding machinery manufacturers. Locally the company is focusing on raising the production/sales ratio of high-performance machines that respond to the needs of manufacturers of electrical appliances and automobile parts, while expanding production capacity at its plants in Shenzhen, Foshan and other cities. The company is also aggressively working to develop a global market.

MHI-PT has led the industry as a pioneer in large-sized electric injection molding machines, including the introduction in 2004 of the world's first hybrid electric injection molding machine with a 3,000-ton clamping force. Its existing MMV series of hydraulic injection molding machines, earmarked for replacement by the MMX series and the basis for development of hybrid electric machines, continues to enjoy a high reputation and attracts numerous repeat orders from customers all over the world who appreciate the machines' excellent performance and reliability and MHI-PT's solid delivery record.

In China, Southeast Asia and India, today's major markets for injection molding machinery, hydraulic machines still constitute the bulk of demand. By establishing a foothold in China through collaboration with Chen Hsong, going forward MHI-PT looks to gain momentum in increasing its market share in the emerging economies, where robust demand is projected.