Press Information

MHI to Establish Subsidiary to Handle Industrial Machinery Business,
Including Material Handling Systems and Rubber & Tire Machinery

No.1476
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Tokyo, November 30, 2011 - Mitsubishi Heavy Industries, Ltd. (MHI), will establish a new subsidiary to handle the industrial machinery business, including material handling systems and rubber & tire machinery, effective April 1, 2012. The new company, to be wholly-owned by MHI, will be created by integrating the industrial machinery business, currently being operated by the Industrial Machinery Business, Technology & Solutions Division of MHI, and three existing MHI group companies, including MEC Engineering Service Co., Ltd. (MEC). Through this initiative, MHI aims to establish an agile and strong business structure capable of responding to severe market environment changes, strengthen business and stabilize revenue bases.

Specifically, the pertinent businesses of MHI's Industrial Machinery Business, Technology & Solutions Division, will be succeeded by MEC, a wholly-owned MHI subsidiary, through a company split. At the same time, Hiroshima Ryoju Engineering Co., Ltd., and Ryosen Engineers Co., Ltd. will merge with MEC. The new company will locate its head office in Nishi-ku, Hiroshima Prefecture, and will mainly handle marketing, design, manufacturing, installation and after-sale services for machineries such as material handling systems, rubber & tire machinery, upstream equipment in iron-making and chemical industry-use machinery.

Of the new company's businesses, the material handling systems and rubber & tire machinery concerns will shift their production overseas to allow domestic operations to focus on the enhancement of marketing and engineering capabilities. For the upstream equipment in iron-making, the company will focus on development and accelerate commercialization of related products. In the chemical industry-use machinery, they will strengthen design capability and expand the production of large-sized chemical machinery and heat exchangers.

The Industrial Machinery Business, Technology & Solutions Division of MHI has been promoting consolidated management by separating business from MHI and establishing companies dedicated to the respective businesses such as the iron-making machinery business in 2000 and the compressor business in 2010. The latest company split is in line with the initiative to integrate the various functions separately handled by MHI's divisions and group companies into one with the aim of conducting speedy and effective business operations by eliminating duplicative work.

The newly established company will be directly managed by the Machinery & Steel Structure Systems business headquarters. The Industrial Machinery Business, Technology & Solutions Division will be dissolved.

MHI will closely liaise with the new company and fully support its business development.