| December 1, 2003 |
|
|
| MHI to Establish Turbocharger Joint Venture In Shanghai Target on Boosting Turbocharger Sales In Chinese Market |
|
|
Tokyo, December 1, 2003 - Mitsubishi Heavy Industries, Ltd. (MHI),
Sumitomo Corporation and Shanghai Diesel Engine Company Limited
have agreed to jointly establish a company in Shanghai to manufacture
and market turbochargers. The joint-venture agreement was signed
in Shanghai. The new firm, to be named Shanghai MHI Turbocharger
Co., Ltd., will be capitalized at US$8.5 million. MHI and Shanghai
Diesel will each own a 40% equity stake in the venture, with Sumitomo
holding the remaining 20%. The new operation is scheduled to commence with manufacture of four types of medium-size turbochargers from February next year, under technological licensing from MHI. The turbochargers are to be used in industrial machinery, such as construction equipment, as well as trucks and buses. Plans call for production of 50,000 units during the first year and 100,000 units in 2006. The turbochargers will be sold widely in Chinese market for the use of diesel engines in construction machinery and trucks. Turbochargers improve the combustion efficiency of engines by feeding pressurized air into the combustion chamber. They are also effective at reducing nitrogen oxides and other exhaust emissions from diesel engines. As turbochargers are the most viable solution for enabling diesel engines to comply with today's increasingly severe environmental regulations, demand for medium-size turbochargers is expected to increase sharply in China, as in other countries, in tandem with the increasing production of diesel engines for trucks and construction machinery in that market. Shanghai Diesel is a core company within the Shanghai Electric Group, a large group of machinery and electricity companies in Shanghai. Annual turnover of 2003 is expected to be approximately 40 billion yen, and the company engages 4,700 employees. In reflection of its strong business performance in recent years, Shanghai Diesel is currently expanding its scope of business. Since this past summer, it has concluded a series of tie-ups with Japanese companies in diesel truck engines and direct-injection fuel pumps. MHI is one of the world's leading manufacturers of turbochargers. The newly announced joint venture in China will mark its third turbocharger manufacturing plant overseas, following facilities earlier established in the Netherlands and Korea. # # #
About Mitsubishi Heavy Industries Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world's leading global heavy machinery manufacturers, with consolidated sales of 2,593 billion yen (US$21.6 billion) in fiscal 2002 (year ended March 31, 2003). 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) |
