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MHI to Split Off Machine Tools Business in October, Integrating Manufacturing and Marketing to Enhance Market Responsiveness and Expedite Decision-Making

No.1897
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Tokyo, May 26, 2015 - Effective October 1, 2015, Mitsubishi Heavy Industries, Ltd. (MHI) will split off its machine tools business to Mitsubishi Heavy Industries Machine Tool Sales Co., Ltd., in Osaka, in an absorption-type company split. The initiative aims to enhance responsiveness to changes in market demand and to expedite corporate decision-making by integrating machine tool manufacturing and marketing into a single entity, effectively increasing the company's ability to compete in the global market.

In effecting this change, Mitsubishi Heavy Industries Machine Tool Sales Co. the successor company of machine tool business, will move its head office from Osaka to the current Machine Tools Division Office in Ritto, Shiga Prefecture. With machine tool business assets transferred from MHI, it will become a company with more than 1,000 employees.

The demand structure of the machine tool market has undergone dramatic change in Japan and other countries. In order to cope with this changed business environment, machine tool companies have endeavored to enhance their competitiveness through expeditious decision-making that leverages their strengths as dedicated machine tool companies. Furthermore, in order to expand their business, companies have had to increase their management flexibility and responsiveness to customers.

Making a fresh start as a dedicated machine tool company, the successor company will implement a flexible management structure that expedites decision making, clarifies business responsibility, enhances responsiveness to changes in market environment and customer needs, and accelerates the strengthening and expansion of its business.

Moving forward, MHI will closely liaise with the successor company and fully support its business development.