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MHI Thermal Systems Establishes JV to Provide Technical Consulting Services to Energy Conservation Investment Projects in China
-- Partnership with State Grid Energy Conservation Service --

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Tokyo, September 5, 2019 - Yesterday Mitsubishi Heavy Industries Thermal Systems, Ltd., a group company of Mitsubishi Heavy Industries, Ltd. (MHI), celebrated the establishment of a joint venture (JV) with State Grid Energy Conservation Service Co., Ltd. (SGECS), a group affiliate of State Grid Corporation of China (SGCC), China's largest power distribution and transmission company, to perform technical consulting services for energy conservation investment projects in China. The new JV, known as SGECS - MHIAS Energy Solution Service (Beijing) Co., Ltd., was established in Beijing through MHI's local subsidiary Mitsubishi Heavy Industries Air-conditioners (Shanghai) Co., Ltd. (MHIAS).

MHIAS oversees the marketing and servicing of centrifugal chillers, air-conditioners and heat pump water heaters throughout China. Under the newly concluded JV arrangement, MHIAS will provide its abundant engineering knowhow accumulated through its worldwide involvement in district cooling/heating plants, to promote energy conservation projects in China.

SGECS is a wholly owned group company of SGCC. Its comprehensive energy services portfolio includes: biomass-derived clean energy power generation; energy-saving solutions, from planning, design and consulting to actual construction; and technical consulting relating to construction of district energy stations. The area networks backed by the company's solid track record will now be incorporated into the new JV's comprehensive energy services.

Through provision of technical consulting services relating to energy solutions, the new JV will contribute to the promotion of energy conservation projects in China, energy conservation and environmental protection. In this way, the new entity will aim to carry out China's energy conservation policy as an energy solutions supplier focused on clean development.

MHI Thermal Systems, by providing high-efficiency products and products with exceptional environmental load reduction performance utilizing the natural refrigerant CO2, now coupled with the technical consulting capabilities in energy solutions of the new JV, stands to strengthen its competitive position in China's increasingly environment-conscious market. Furthermore, by promoting the widespread adoption of such products, the company will also help to curb global warming.

Ceremony for establishment of new JV
Ceremony for establishment of new JV
Message from MHI Thermal Systems President Kaoru Kusumoto
Message from MHI Thermal Systems President Kaoru Kusumoto
Message from SGECS General Manager Li JingZhong

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