 |
||
| August 3, 2006 No.1125 | ||
| MHI to Strengthen Global A/C Production Structure Through Overseas Transfer of Commercial-Use PAC Manufacturing |
||||||
| Tokyo, August 3, 2006 - Mitsubishi Heavy Industries, Ltd. (MHI) is about to strengthen its global air-conditioner production structure through transfer of commercial-use packaged air-conditioner (PAC) manufacturing, excluding large-size high-end machines, to two overseas joint venture companies: Mitsubishi Heavy Industries-Mahajak Air Conditioners Co., Ltd. (MACO) in Thailand and Mitsubishi Heavy Industries-Haier (Qingdao) Air-Conditioners Co., Ltd. (MHAQ) in China. | ||||||
MHI will transfer production of all small-size commercial-use PAC systems to MACO by the end of fiscal 2007. In tandem with the shift, MHI's investment share in MACO will be raised to 75% from the current 51%. Production of medium-size PAC systems will be transferred to MHAQ in stages. The small-size commercial-use PAC systems being transferred to MACO feature cooling capacities in the 4-6 HP (10-14 kW) range. As MACO has been producing residential-use air-conditioners (RAC) since 2003 and small-size PAC systems with less than 3 HP (7.0 kW) cooling capacity since February 2006, the latest shift will make MACO the backbone of MHI's A/C business capable of manufacturing both RAC and small-size PAC units. Timed with the shift, MACO will utilize the capital increase from MHI to make about 1 billion yen investment in production facility enhancement and plant expansion. MACO was established in 1988 as a joint venture between MHI and the Mahajak Group, which includes Mahajak Industry Co., Ltd., the entity that earlier served as MHI's distributor in Thailand. MACO has its headquarters and factory in Bangkok and employs a staff of 1,500 (including temporary employees). Air-conditioners produced at MACO are currently sold worldwide except in China. MACO will also function as RAC distributor in the Southeast Asian region. MHAQ, which is to manufacture medium-size PAC systems, was established in 1993 as a joint venture between MHI and the Haier Group, China's largest home appliances producer. MHAQ undertakes manufacture and marketing of "MHI-Haier" brand PAC units for the Chinese market. Following the new production shift, MHAQ will also produce medium-size "MHI" brand PAC systems for the global market. Production and marketing of RAC systems for the Chinese market are carried out by Mitsubishi Heavy Industries-Jinling Air-Conditioners Co., Ltd. (MJA), which was established in 1995 as a joint venture between MHI and Jinling Electrical Co., Ltd. MHI's air-conditioning business faces fierce competition today due to maturing of the domestic market and the appearance of new manufacturers in the emerging nations. However, through reorganization and upgrading of its PAC and RAC manufacturing bases through the latest production shifts, the company will achieve a structure enabling global distribution of related business operations, thereby permitting more aggressive and efficient execution of its A/C operations in the years ahead. # # #
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 2,792 billion yen in fiscal 2005 (year ended March 31, 2006). MHI's diverse lineup of products and services encompasses shipbuilding, steel structures, power plants, chemical 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.) |
