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MHI to Launch Gear Cutting Machine Production in Bengaluru, India, To Meet Vigorous Demand from Local Auto-related Sectors
-- Move Enables Integrated Marketing, Servicing of Machines and Tools --

No.1527
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Tokyo, April 18, 2012 - Mitsubishi Heavy Industries, Ltd. (MHI) will commence gear cutting machine production in Bengaluru (previously Bangalore), India, this October. In liaison with its existing local subsidiary producing gear cutting tools, the company will establish a structure enabling integrated provision of high-precision gear cutting systems. The initiative aims at responding swiftly to vigorous demand for equipment investment from India's automobile-related manufacturers against the backdrop of the country's sharp increase in vehicle production.

The new plant will be launched by a wholly owned local MHI subsidiary: Mitsubishi Heavy Industries India Private Ltd. (MHII). Bengaluru is home to many manufacturers and related suppliers of motorcycles and automobiles. To date MHII has undertaken marketing support and business development activities for the local automobile industry; now the company is to establish a business unit to take charge of manufacturing and marketing of machine tools.

Plans call for incremental expansion of local production of machine tools. During the initial year of production MHII will procure various small-size machines in finished form – gear hobbing, shaping and shaving machines for the production of motorcycles, which are very popular in the Indian market – and attach peripheral devices, etc. at the new plant. The production target for the Bengaluru facility is set at about 40 units in the initial year, to be expanded to 100 units/year production capability through local parts procurement within two or three years.

In 2005 MHI established Mitsubishi Heavy Industries India Precision Tools, Ltd. (MHI-IPT)* through the acquisition of a local gear cutting tool manufacturer. In 2007 MHI-IPT expanded its production capacity with the launch of a new plant, enabling MHI to secure the leading position in India's market for gear cutting machines and tools. Now, with the commencement of gear cutting machine production directly in India, the company will become able to integrally handle manufacturing, sales and maintenance services in India for both cutting tools and machines that enable high-precision gear machining. The result will be a dynamic integrated service structure of a kind no other company has ever been able to provide in India.

Going forward MHI will establish a gear cutting machine/tool supply structure enabling swift response to the projected rapid expansion of the Indian market for these products. The company will also pursue synergy merits from this capability and excellent cost competitiveness in a quest for further expansion of its market share.

Note:Mitsubishi Heavy Industries India Precision Tools, Ltd. (MHI-IPT), based in Ranipet, near Chennai, operates a plant manufacturing high-precision cutting tools. MHI owns 96% of MHI-IPT's equity.