MHI to Establish Subsidiary in Singapore to Strengthen Global Operating Structure of Machinery & Steel Structures Business
TOKYO, Sep, 06 2010 - (ACN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI) will establish MHI Industrial Engineering & Services Private Ltd. (MIES) in Singapore effective October 1, which will handle the company's machinery and steel structures business. MIES is aimed to function as a marketing and service base for environmental and chemical plant projects in the Southeast Asia and Middle East regions, where market expansion is expected over the long term. The new company will also serve to execute part of EPC (engineering, procurement and construction) projects, such as procurement activities. Future plans call for MIES to broaden its business scope from environmental and chemical plants to other product areas and become a regional business base for other operations in machinery and steel structures.
MIES will undertake a variety of engineering projects, including gas and oil production facilities, flue-gas desulfurization systems and carbon dioxide (CO2) recovery systems, in addition to its primary focus on chemical plant projects. Mitsubishi Heavy Industries Singapore Private Ltd. (MHISP), a wholly owned subsidiary of MHI, will hold 100% of MIES's capital, which will be S$2.4 million (approximately \150 million) upon establishment but is subject to future increases in step with business expansion. MIES will initially launch operations with 11 employees, with plans envisioning an increase to about 50 within four years. Takato Nishizawa, Deputy General Manager of MHI's Machinery & Steel Structures Headquarters, will concurrently serve as Managing Director of MIES.
The markets for environmental and chemical plants are basically in expansionary trends along with economic growth and population increases in the emerging countries. Competition in these markets is intensifying, however, due to the significant ascendancy of Korean companies - with Chinese companies expected to catch up in the future - and rivalry among engineering companies in Japan, Europe and the U.S. To respond to these market conditions, MHI has been faced with the urgent task of maintaining and enhancing its ability to deal promptly, dynamically and locally with customers in areas ranging from project development to construction and completion of plants. It was against this backdrop that MHI opted to establish the new company in Singapore.
In conducting its environmental and chemical plants business overseas, MHIA Environmental Systems, a business unit of Mitsubishi Heavy Industries America, Inc. (MHIA), handles projects in the U.S. MHIA is a wholly owned subsidiary of MHI that oversees the company's U.S. operations. Projects in Europe, Africa, and Russia and neighboring countries are handled by the Amsterdam Branch of Mitsubishi Heavy Industries Europe, Ltd. (MHIE), MHI's subsidiary to oversee its business in Europe. Business in other regions is performed by MHI's Environmental & Chemical Plant Division in Yokohama. The Amsterdam Branch of MHIE was established in July this year.
With the establishment of its new regional business base in Asia, joining bases in the U.S. and Europe, MHI will now turn its attention to further strengthening its business activities in environmental and chemical plants in the fiercely competitive global marketing availing of its enhanced global business structure encompassing its three regional bases plus its operations in Japan.
About Mitsubishi Heavy Industries, Ltd.
Mitsubishi Heavy Industries (MHI) Group is one of the world's leading industrial firms. For more than 130 years, we have channeled big thinking into solutions that move the world forward - advancing the lives of everyone who shares our planet. We deliver innovative and integrated solutions across a wide range of industries, covering land, sea, sky and even space. MHI Group employs 80,000 people across 400 locations, operating in three business domains: "Power Systems," "Industry & Infrastructure," "Aircraft, Defense & Space." We have a consolidated revenue of around 40 billion U.S. Dollars. We aim to contribute to environmental sustainability while achieving global growth, using our leading-edge technologies. By bringing people and ideas together as one, we continue to pave the way to a future of shared success.
For more information, please visit MHI's website: https://www.mhi.com
For Technology, Trends and Tangents, visit MHI's new online media SPECTRA: https://spectra.mhi.com
Source: Mitsubishi Heavy Industries, Ltd.
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