Tokyo, October 1, 2018 - Mitsubishi Heavy Industries Compressor Corporation (MCO), a group company of Mitsubishi Heavy Industries, Ltd. (MHI), has established MHI Compressor Korea, Ltd. (MCO-K), a joint venture with Mitsubishi Corporation, and began operations today. The new company aims to further cultivate the promising market in South Korea, where it has sold many compressors and drivers.
MCO-K was established in Seoul with capitalization of 900 million won (approx. 100 million yen). MCO holds a 70% share, with the remaining 30% owned by Mitsubishi Corp. The company was launched with a four-person team led by President Ryota Okada from MCO, and will be expanded going forward. MCO-K will strengthen the organizational structure by creating a central point of contact for customers in South Korea, provide closer connections and faster responsiveness to end users and EPC (Engineering, Procurement, and Construction) companies, and focus on cultivating demand for new construction as well as renovation and after-sales service.
MCO has sold over 200 compressors and drivers in the South Korean market, mainly for petrochemical plants. The ethylene and other petrochemical materials and products produced in South Korea are exported to the major consuming area of China, where firm demand is expected to continue. The new company MCO-K will be in a position to respond quickly to needs from these end users for increased production capacity, overhauls, and regular maintenance. In addition, with South Korean EPC companies exerting a greater presence worldwide in petrochemical plant construction, MCO-K will strengthen ties to allow for cooperation from the plant planning stage.
With the launch of MCO-K, MCO will work to expand sales in South Korea, with a view to utilizing the new company to facilitate broader market development. MCO will also work in close cooperation with MHI and Mitsubishi Corp. to expand market share and strengthen the competitiveness of MCO products.