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MHI Signs Plant Location Agreement with Matsusaka City
- Framework Readied for Integrated Manufacturing Suppliers of Aircraft Parts and Production of Vertical and Horizontal Tails for MRJ -

No.1899
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Tokyo, June 1, 2015 - On June 1, Mitsubishi Heavy Industries, Ltd. (MHI) signed a plant location agreement with Matsusaka City in Mie Prefecture, Japan, concerning aircraft production-related business activities at MHI's Matsusaka Plant. In tandem with the signing, a plant location agreement was concluded between Matsusaka City and the Aircraft Parts Manufacturing Cooperative (APM) that will handle parts production at the Matsusaka Plant. With these agreements, the framework has been laid to establish an industrial cluster centered on the Matsusaka Plant for the integrated production lines of small parts for commercial aircraft, and vertical and horizontal tails for the Mitsubishi Regional Jet (MRJ), a next generation regional jet.

The signing ceremony for the agreement was attended by a number of representatives from industrial circles and government and municipal offices that support the project, including Japan's Ministry of Economy, Trade and Industry and Ministry of Land, Infrastructure, Transport and Tourism. Also attending the ceremony were Mitsushige Yamanaka, Mayor of Matsusaka City, Eikei Suzuki, Governor of Mie Prefecture, and nine representatives from companies in APM. MHI was represented by Yoichi Kujirai, Senior Executive Vice President and CEO of Commercial Aviation & Transportation Systems.

Based on the agreement, MHI will collaborate with APM in the utilization of the Matsusaka Plant factory facilities. MHI also fully supports APM's efforts to establish a highly efficient and cost-competitive parts production center that will enable it to handle the entire process of small parts production for commercial aircraft, from machining and sheet-metal works to surface finishing and painting. MHI will also assist APM in obtaining the various certifications that are necessary for production launch.

At the site, APM plans to establish a "Smart Cluster" that will enable effective and flexible integrated production of small parts for commercial aircraft, including the MRJ and airplanes manufactured by The Boeing Company. In their quest to achieve this goal and compete more aggressively in the global market, APM will blend highly efficient manufacturing methods used in the automobile parts industry into aircraft parts production system in order to create a sophisticated, self-sustaining parts production system . Going forward, the participating companies aim to begin full-fledged operations in the latter half of fiscal 2016.

MHI plans to make the Matsusaka Plant a key manufacturing base for MRJ in Japan, and aims to begin production of vertical and horizontal tail sections there by the end of March 2017.

Matsusaka City is located in the Tokai region, which is home to many aircraft-related businesses that the Japanese government has designated as ‘Special Zone to Create Asia No.1 Aerospace Industrial Cluster’ in an effort to promote the development of Japan's aircraft industries. Located in the Matsusaka Core Industrial Complex, the Matsusaka Plant is also a part of this special district.

The Mitsubishi Regional Jet (MRJ) is a family of 70~90-seat next-generation aircraft currently being developed by Mitsubishi Aircraft Corporation. The MRJ drastically reduces fuel consumption, noise and emissions while also offering a more spacious and comfortable cabin than existing regional jets.

With the plant location agreements as a basis for further development, MHI will strive to make the MRJ project a success, and contribute to the creation of a Japanese aircraft industry that is highly competitive powers in the global market.

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.