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| March 10, 2004 No.0985 | ||
| MHI To Establish Paper Machinery JV in China |
| Tokyo, March 10, 2004 -- Mitsubishi Heavy Industries, Ltd. (MHI) and Zibo Heng Xing Ji Dian She Bei Co., Ltd., one of China's leading pulp and paper machinery manufacturers, have agreed to establish a joint venture company in Zibo, Shandong Province, to conduct manufacturing, sales and after-sale services relating to paper machinery. The joint venture, to be named "Mitsubishi Heavy Industries - Heng Xing Paper Machinery Co., Ltd.," will be capitalized at approximately 700 million yen. Establishment is scheduled for April, and operations will get under way this October. MHI, with a 60% equity stake, will take charge of managing the new venture. The rest of equity will be owned by Zibo Heng Xing Ji Dian. The new JV will conduct manufacturing and marketing of medium-size paper machinery, aiming at annual order of 2 billion after four years from now. The number of employees will be roughly 100. In China, paper consumption is growing in line with vigorous economic growth and demand is especially active for medium-size paper machinery, which is relatively of low-cost and offers production capacity matching the current needs for paper supply in China. Combining MHI's comprehensive technological expertise including R&D capabilities and competitive manufacturing capacity of Zibo Heng Xing Ji Dian as well as its marketing ability in China, the new JV will manufacture and promote sales expansion of medium-size paper machinery in the Chinese market. The company will further function as an after-sale service base in China for larger paper machinery supplied by MHI. Shandong Province is the center of paper making in China, accounting for nearly 20% of that nation's total production. The province is home-base to six of the country's top 20 paper manufacturers. Zibo, located near the center of the Province, is the third-largest city in Shandong, after the provincial capital Jinan and Qingdao along the coast. The paper demand in China being expected to remain robust for quite some time, many paper manufacturers from all over the world are now investing heavily in China. With the establishment of the new manufacturing and marketing base in Zibo, MHI aims to further expand its market share in China, which continues to develop into a huge market for paper consumption. |
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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) |
