Press Information

Basic Agreement reached with JTEKT toward Tie-up in Machine Tool Business
-- Aims Set on Enhancing Competitiveness and Expanding Business Scale --

Mitsubishi Heavy Industries, Ltd.
Mitsubishi Heavy Industries Machine Tool Co., Ltd.

Tokyo, December 22, 2017 - Mitsubishi Heavy Industries, Ltd. (MHI) and its wholly owned Group company Mitsubishi Heavy Industries Machine Tool Co., Ltd. (MAT) have reached a basic agreement with JTEKT Corporation to commence discussions toward forming a business partnership, including capital participation, in the field of machine tools and precision tools.

By pooling their respective management resources, the three companies seek to enhance their competitiveness in the market for machine tools and expand their business scale. Their shared aim now is to agree on the conditions necessary to forming a tie-up, and conclude a formal agreement, by July 31, 2018.

Going forward, by integrating their respective areas of proven strength through a formal partnership, MHI, MAT and JTEKT look to pursue synergies in technology, marketing and cost competitiveness, to achieve their further business development.

MAT and JTEKT Company Outlines
Company name Mitsubishi Heavy Industries Machine Tool Co., Ltd. (MAT) JTEKT Corporation
Establishment October 1, 2015 January 1, 2006
Head office(s) 130, Roku-jizo, Ritto, Shiga 520-3080, Japan Nagoya Head Office:15th Floor, Midland Square, 4-7-1 Meieki, Nakamura-ku, Nagoya 450-8515, Japan
Osaka Head Office:3-5-8 Minami-semba, Chuo-ku, Osaka 542-8502, Japan
President Keiichiro Iwasaki Tetsuo Agata
Capital 3,000 million yen 45,591 million yen
Businesses (1) Design, manufacture, sales and consulting services associated with machine tools, cutting tools, and related products
(2) Installation, technical guidance, and after-sale services related to the above products
Manufacture and sale of steering systems, bearings, driveline components, machine tools, electronic control devices, etc.
Net sales in FY2016 36,551 million yen (nonconsolidated) 1,318,310 million yen (consolidated)