Mitsubishi Heavy Industries Engine & Turbocharger to Sell MHI Meiki Engines to Meiko Seiki
Tokyo, March 1, 2023– Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. (MHIET), a member of MHI Group, will spin off its business of air-cooled small gasoline engine (Meiki Engines) to Meiko Seiki Co., Ltd (Meiko Seiki). MHIET will sell all the 67% share it owns for Mitsubishi Heavy Industries Meiki Engines Co., Ltd. (MHIM) to Meiko Seiki on March 31, 2024. With this, MHIM will be a wholly owned subsidiary of Meiko Seiki.
Production of Meiki Engines began in 1946 in Nagoya. Using Meiki as the brand name, the engines have been widely used for agricultural and construction machineries in and outside Japan. In 2019, Meiko Seiki purchased MHIM’s shares and MHIM moved its factory to Tsushima city in Aichi. MHIM has recently established a new brand “MEiKi POWER” and been trying to explore new technologies and markets through offering possible options for carbon neutrality such as hydrogen engines, fuel cells, electric motors in addition to power units and new products that meet demands from existing customers.
As the domestic agricultural machinery market that is Meiki Engines’ battlefield is reaching its maturity, MHIM thought it would be necessary for the management to achieve shorter product development cycle and shorter lead time while keeping Japan-made quality, performance and durability and to accelerate the effort for global expansion and carbon neutrality. Consequently, MHIM has reached a decision that it is inevitable to switch to the management style that is specifically suited to building a global network for mass-production business.
Meiko Seiki is a highly skilled manufacturer of super precision machined parts mainly used on automobiles. It has a joint venture in China and a factory in Thailand and is expanding its business worldwide. Though Meiko Seiki’s core business is manufacture and sales of automotive parts, it has been seeking a way to utilize its management knowhow for a new mass-production business.
This share transfer was made possible as the intentions of both parties met; Meiki Engines business seeking a management knowhow necessary for further expansion and Meiko Seiki having the knowhow and wishing to expand the business. Both parties are certain that they will extend the business based on the foundation that Meiki Engine business has fostered and will embody the ambition it gave in “MEiKi POWER” while offering the employees new value and opportunity for leap as well as customers in various industries even more values.