Press Information

MHIEC Establishes Environmental Equipment Marketing Company in China
To Enhance Sales Activities, Closely Adhering to Local Market

No.1493
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Tokyo, January 31, 2012 - Mitsubishi Heavy Industries Environmental & Chemical Engineering Co., Ltd. (MHIEC), a wholly-owned subsidiary of Mitsubishi Heavy Industries, Ltd. (MHI), has established MHIEC Environment (Beijing) Co., Ltd. (MHIECC) in Beijing, China, and will start its operation on February 1. The new company will function as a local marketing base for MHIEC's environmental plant and equipment arm. Through the operation of the new company, MHIEC aims to enhance its marketing activities in China, closely-adhering to the local market, and respond to increasing demands for waste incineration plants and sewage sludge treatment facilities in the country. MHIECC will provide support to customers and partners, and conduct research and information-gathering activities for new projects and function as MHIEC's local procurement point.

As well as providing support to its existing customers and partner companies in China, the new company will conduct market research, present proposals to potential customers, including technological presentations, and explore new local suppliers. It will also function to complement MHIEC's activities in China, including advertising and sales promotion. Plans call for the new company in the future to also serve as a contact point in locally procuring materials, components and parts for use in Japan and handle exports and contract work for MHIEC.

In the Chinese environmental business market, demand for municipal solid waste (MSW) incineration facilities had been mainly in the South China and Shanghai areas, but has recently grown around Beijing. China plans to expand incineration capacity 15,000 to 20,000 tons per day (tpd) per year by adding about 200 incinerators in five years. In addition, steady demand exists for sewage sludge incineration and drying equipment to reduce the volume of disposal for landfills. From the perspective of air-pollution prevention, demand in flue gas treatment equipment for incinerators is also expected to increase.

MHIEC has received orders for 25 large-size MSW incinerators in China, making the company one of top four foreign suppliers of the kind in China. In 2011 MHIEC received orders for a 3,000 tpd MSW incineration facility, one of the largest in China, for Beijing, and a similar 1,500 tpd facility for Foshan, Guangdong Province.

Gaining momentum from the establishment of its new Beijing subsidiary, MHIEC further accelerates its business development closely adhering to the local market and aggressively conducts activities to enhance its relationship with customers and partners.