MHI Changes Business Structure to Drive Growth Strategies
-- New Structure Takes Effect April 1, 2020 --
-- New Structure Takes Effect April 1, 2020 --
･ "Growth Strategy Office" to be established under direct CEO supervision, enabling enhanced exploration and development of new businesses
･ Existing businesses to be strengthened through reorganization into 3 domains and 4 segments, with flat organization to drive growth
Tokyo, February 6, 2020 - Effective April 1, Mitsubishi Heavy Industries, Ltd. (MHI) will reorganize its corporate structure with the establishment of a new "Growth Strategy Office" to enable exploration and development of new businesses, as well as reorganizing its business domains and segments which will lead to a flatter organization to help accelerate its growth strategy. The reorganization will include absorption of MHI's wholly owned Group company Mitsubishi Heavy Industries Forklift, Engine & Turbocharger Holdings, Ltd. (M-FET). With the new reorganization program, MHI will harness its Groupwide synergies to strengthen earning capacity and global market competitiveness while responding to changes in the external business environment, including the need to accelerate decarbonization initiatives and deal with U.S.-China trade frictions.
1. Establishment of Growth Strategy Office: advancement of growth strategy under direct CEO oversight
Functions relating to new business development, which until now have been spread mainly across the Business Strategy Office and Marketing & Innovation Headquarters, will be consolidated under a newly established "Growth Strategy Office" directly managed by the CEO. The new entity will flexibly pursue business expansion through exploration of new business areas and integration of existing businesses -difficult to achieve under the current business division organization - to respond to major shifts in social values and the rapid development of technological innovation.
2.Domain reorganization: further strengthening of existing businesses
- Business structure improvements for global growth
・Current Power Systems domain becomes Energy Systems, enabling global expansion in the energy and environment fields
- The current Power Systems domain, centered around Mitsubishi Hitachi Power Systems, Ltd. (MHPS), which will become a wholly owned MHI Group company, will become the new "Energy Systems" domain. In its new incarnation, the Energy Systems domain will strengthen MHI's global growth in the energy and environment fields, with a focus on decarbonization, and promote structural changes in the thermal power systems area.
・Current Industry & Infrastructure domain split into two domains: Plants & Infrastructure Systems; Logistics, Thermal & Drive Systems, covering made-to-order products and mass-produced products respectively
- The current Industry & Infrastructure domain will be divided into a "Plants & Infrastructure Systems" domain handling made-to-order products and a "Logistics, Thermal & Drive Systems" domain handling mass-produced products. The two new domains will accelerate related growth strategies and respond to challenges within their respective business areas.
- M-FET, which has been in charge of logistics systems, engines and turbochargers, will be absorbed into MHI to achieve a flatter organization. M-FET has fulfilled its intended objectives, especially post-merger integration (PMI) in the logistics systems business.
- Enhanced flexibility in domestic-focused businesses
・New Nuclear Energy Systems segment and Machinery Systems segment under direct CEO management
- The current Nuclear Energy Systems Division will undertake more flexible business operations as a new "Nuclear Energy Systems" segment under the CEO's direct management.
- Mitsubishi Heavy Industries Machinery Systems, Ltd., which has handled a diverse portfolio of products as a domain-based organization, will pursue enhanced flexibility as a new "Machinery Systems" segment under the CEO's direct management.
3. New corporate organization
MHI's new corporate organization resulting from the foregoing changes, effective April 1, 2020, is shown in the attachment.
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.