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| November 24, 2004 No.1031 | ||
| MHI to Establish Machine Tool Sales/Service Unit in Hong Kong -- Aiming to Double Sales in China to 10 Billion Yen -- |
| Tokyo, November 24, 2004 -- Mitsubishi Heavy Industries, Ltd. (MHI) is about to establish a new company in Hong Kong exclusively dedicated to machine tool sales and service, in a quest to further strengthen its machine tool business in China. The new unit, to be known as MHI Machine Tools H.K., Ltd., will start operations in December. |
While MHI has conducted its machine tool business through its local offices and subsidiary in the Chinese market, which is now the world's largest and still expanding steadily, MHI decided to establish a local organizational structure dedicated to machine tool business in order to implement marketing activities optimally tuned to the special demands of this product category. The new unit will establish sales and service bases in Beijing and Shanghai in next spring. Through meticulous response to customer needs through its new local bases, MHI aims to double its machine tool sales in China to 10 billion yen in 2007. MHI Machine Tools H.K. will be capitalized at HK$5 million (approximately 75 million yen) as a wholly owned subsidiary of Mitsubishi Heavy Industries, (Hong Kong) Ltd. (MHIH). Next spring, the Beijing and Shanghai bases will open to cover the northern and central regions of China, where the target users are most heavily concentrated. Southern China and Taiwan will be covered by the Hong Kong headquarters. This three-pole structure will enable the company to approach local customers directly. MHI aims for the new company to engage mainly Chinese employees in order to achieve swift localization. It also seeks to secure talented and highly motivated personnel through adoption of flexible working conditions, performance-oriented evaluations and a commission-based pay system, while clarifying responsibility thoroughly. Through these initiatives, MHI will strengthen its capability to propose solutions precisely matching each customer's needs. Efforts will also be directed into after-sale services and sales support activities, including hosting of seminars and opening of showrooms. Items to be handled by the new company include machine tools of all kinds, cutting tools and automobile engine valves. In particular, MHI seeks expanded sales of machining centers and heavy-duty machine tools to mold-and-die manufacturers, who are concentrated in the Guangdong area, to automobile parts and textile machinery manufacturers in central China, and to construction and industrial machinery manufacturers throughout China. It will also actively market gear cutters and special machine tools customized to user production-line requirements to major automobile and auto-parts manufacturers. As of 2003 the global machine tool market is worth approximately 3.8 trillion yen. China accounts for 19% (723.8 billion yen), far exceeding Japan (12%) and Germany (10%) as the world's largest machine tool market. Going forward, MHI intends to aggressively pursue increased orders, sales and profits in this huge growing market by forging a sales and service structure optimally suited to the special demands of each product and region. # # #
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.) |
