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| November 15, 2004 No.1029 | ||
| MHI to Establish 4 New Overseas Subsidiaries -- Boosting Presence in Brazil, India, Singapore and Korea -- |
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| Tokyo, November 15, 2004 -- Mitsubishi Heavy Industries, Ltd. (MHI) is about to add four new subsidiaries to its global network. The units, either completely new undertakings or operations upgraded from existing local representative offices, will be created in Brazil, India, Singapore and Korea over the next few months as part of MHI's improvement and reinforcement of its overseas bases to meet the needs of today's rapidly globalizing economy. All four of the new bases are to be added in core markets where MHI is currently pursuing enhanced sales and procurement strengths to match evolving local needs. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The new units will follow a precedent set in April 2004 when the Mexico representative office was upgraded to a full-fledged subsidiary. The selection of the four sites in question reflects expectations of strategic merits to be reaped from new developments in the global economy. These include the emerging presence of the BRICs*, expanding conclusion of free trade agreements (FTA), and intensifying links among the economies of Northeast Asia (Japan, China, Korea). In recognition of the rising presence of the BRICs, MHI has opted to create new local subsidiaries in Brazil and India. Mitsubishi Industrias Pesadas do Brasil Ltda., to be based in Sao Paulo, and Mitsubishi Heavy Industries India Private Ltd., to be located in New Delhi, will both open for business in January. MHI has been operating in Brazil for 40 years, tracing back to the founding of CBC Industrias Pesadas S.A., a boiler manufacturing base situated in Sao Paulo. The new subsidiary is being created specifically as a sales base responding to Brazil's solid development as a core country within Mercosur, the emerging market embracing the southern countries of South America, and moves to reduce local barriers to trade. Within 2-3 years MHI looks for orders from Brazil to reach ¥15 billion, up significantly from the ¥11 billion recorded last year when CBC was added to the fold. In India, business opportunities are rapidly expanding in tandem with new economic policies promoting deregulation, an open economy and FTAs. Inquiries are becoming active across a wide spectrum: from large-scale systems and equipment for power and chemical plants to industrial products such as air-conditioners, printing presses and machine tools. In response to these dynamic changes, Mitsubishi Heavy Industries India will serve not merely as a sales base but as a comprehensive regional base encompassing operations including procurement and production. MHI is targeting sales in India of ¥10 billion within 2-3 years, up from ¥4.1 billion last year. By way of response to expanding FTA movements, in December MHI will be establishing Mitsubishi Heavy Industries Singapore Private Ltd., to serve as a local sales and procurement base in Singapore. Presently the Singapore Government is proactively moving forward with FTA links as it strengthens the city state's influence on the nations of Southeast Asia, China and India. MHI sees Singapore playing a core role within information and trade exchanges throughout Asia, and with the creation of the new Singapore subsidiary it aims for expanded business opportunities in neighboring nations. Plans call for orders through Singapore to reach ¥30-40 billion within several years; last year order receipts totaled ¥15.2 billion. Mitsubishi Heavy Industries Korea Ltd. will be established in Seoul in January, as a sales base. The move is in response to increasingly close and active economic ties involving the various nations of Northeast Asia, as illustrated by China's joining the World Trade Organization (WTO), Korea's withdrawal of import regulations against Japan, and potential FTA links and investment agreements between Japan, China and Korea. Until now MHI has not had its own sales base in Korea, and the only unit in operation has been the Pusan Representative Office, which has provided support to procurement transactions. The creation of the new sales base in Seoul will enable MHI to respond to Korea's expanding business opportunities. The company looks for orders to reach ¥40-50 billion within several years; order receipts last year totaled ¥36.6 billion. In tandem with the improvement and reinforcement of the four new overseas subsidiaries, MHI is also aiming to reorganize its operating structure in China as that nation moves forward toward deregulation. A thorough review will be made of bases now operative in Beijing, Shanghai and Hong Kong. Profile of New Subsidiaries
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About Mitsubishi Heavy Industries Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 2,373 billion yen in fiscal 2003 (year ended March 31, 2004). MHI's diverse lineup of products and services encompasses shipbuilding, steel structures, power plants, chemical plants, steel plants, environmental equipment, industrial and general machinery, aircraft, space rocketry and air-conditioning systems. For more information, please visit the MHI website (http://www.mhi.co.jp). PRESS CONTACT: Hideo Ikuno: h.ikuno@daiya-pr.co.jp Tel: +813-6716-5277, Fax: +813-6716-5929 Daiya PR (in charge of public relations for Mitsubishi Heavy Industries, Ltd.) |
