Mitsubishi Heavy Industries Establishes Engineering Company in India
Jointly with Oman's Suhail Bahwan Group
Tokyo, September 6, 2011 - Mitsubishi Heavy Industries, Ltd. (MHI) and Suhail Bahwan Group (SBG) of Oman have established a joint venture engineering company, namely MHI Engineering and Industrial Projects India Private Limited (MEIP), in India effective September 2, 2011. MEIP will undertake business development, design, engineering, procurement, construction management, after-sale services and other functions for various industrial and infrastructure projects handled by MHI's Machinery & Steel Infrastructure Systems division, which is also responsible for the construction of fertilizer plants, methanol plants, petrochemical plants and oil & gas production plants. To start with, MEIP shall develop businesses related to chemical & environmental plants (including carbon dioxide recovery systems and flue-gas desulfurization plants) and transportation systems in the fast growing Indian market. Future plans call for MEIP to expand its business coverage to include the Middle East and Africa.
The initial capital of MEIP is about US$ 20 million with MHI holding 51% and SBG owning 49%. Its head office is located in Gurgaon, Haryana State, near Delhi.
MHI, headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 2,903.7 billion yen (about US Dollars 35 Billion) in the year ended March 31, 2011. MHI's diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems.
SBG is the largest diversified business group in Oman. It encompasses more than 40 companies engaged in a host of businesses including fertilizer production, engineering and construction, operation and maintenance of desalination and power plants, automobile distribution, financial services, telecommunications and logistics etc. SBG has a long and close business relationship with several Japanese companies including MHI who have built SBG's world class fertilizer plant in Oman which exports about 1.3 million tonnes of granular urea annually. MHI is presently constructing the largest green field ammonia/urea complex in the world for a company owned 51% by SBG and 49% by Sonatrach in Algeria.
The joint venture is a symbol of the aspirations of MHI and SBG to leverage each other's strengths by utilizing MHI's technological capabilities in a wide range of fields and SBG's know-how and quality management. Since adopting a course of economic deregulation, India's economy has expanded very rapidly, and is expected to achieve about 8% growth in 2011. Along with this vigorous economic growth, infrastructure-related investment has been increasing robustly. In view of the rising trend in infrastructure investment and soaring demand from various related industries, MHI and SBG decided to establish MEIP.
Going forward, MHI in collaboration with SBG, will fully support the new joint venture company's business development activities in both technological and sales and marketing aspects.