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Food Packaging Machinery Operations to be Transferred to Mitsubishi Heavy Industries Mechatronics Systems, in Pursuit of Synergies to Strengthen Small and Medium-scale Business Structures

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Tokyo, July 28, 2016 - Effective October 1, Mitsubishi Heavy Industries, Ltd. (MHI) will transfer the food packaging machinery operations currently performed by Nagoya-based Mitsubishi Heavy Industries Food & Packaging Machinery Co., Ltd. (MHI-SK) to Mitsubishi Heavy Industries Mechatronics Systems, Ltd. (MHI-MS), which is located in Kobe. The integration of these operations at Kobe is being carried out as part of MHI's strategy to strengthen the structures of its businesses of small and medium scale, with two aims: to pursue synergies in technological and sales capabilities, and to standardize and enhance the efficiency of related business administrative processes.

Both MHI-SK and MHI-MS are wholly owned MHI Group companies. The integration of operations will be implemented with MHI-MS as the surviving company absorbing MHI-SK. Since MHI-MS's launch in 2009, the MHI Group's small and medium-scale product businesses have progressively been consolidated and integrated into MHI-MS, resulting in a more stable financial foundation and enhanced earning capability. Following the merger with MHI-SK, MHI-MS will have a workforce numbering approximately 1,350 handling businesses spanning a broad spectrum including intelligent transportation systems (ITS), hydraulic machinery, machinery systems, mechanical parking systems, steel structure plants and food packaging machinery.

MHI-SK, founded in 2005, has continuously functioned as a comprehensive manufacturer specializing in food packaging equipment. The company's merger with MHI-MS is targeted at strengthening technological capabilities toward further business expansion and pursuing developments in products geared to industries other than food and beverages.

With respect to pursuit of post-integration synergies, in technological areas efforts will focus on applying ITS control technologies to food packaging machinery, communization of small and medium-scale machinery system products, and strengthening of development capabilities through technology and resource sharing. In aspects relating to sales, initiatives will target sharing of information and strategies for shared customers, more effective operations through integration of branch and sales office functions and locations, and sharing of knowhow to promote export expansion.

Following the merger, MHI will work closely with MHI-MS and provide all-round support to its business developments.
Profile of Mitsubishi Heavy Industries Mechatronics Systems, Ltd. (as of October 1, 2016)
Corporate name Mitsubishi Heavy Industries Mechatronics Systems, Ltd.
Head office 4-22, Wadamiya-dori 5-chome, Hyogo-ku, Kobe
President Tadashi Nagashima
Business scope Design, manufacture, sales and after-sale servicing of toll collection machinery and systems, ETC (electronic toll collection) systems, hydraulic machinery, deck machinery and deck cranes, air-heaters, machinery systems (testing equipment, cultural/sports facilities, particle accelerators), mechanical parking facilities, steel structure plants, food packaging machinery, and other machinery and equipment
Employees Approx. 1,350
Capitalization 1,060 million yen
End of fiscal year March 31