MHI to Establish Power System Business Subsidiary in London
-- Response to Rising Demand for Power Generation Systems in EU --
Tokyo, October 18, 2007 - Mitsubishi Heavy Industries, Ltd. (MHI) established a subsidiary in the UK, in London, on October 8 in a quest to attract expanded orders in Europe for its power generation systems, including gas turbine combined-cycle (GTCC) plants. Through the new base, MHI aims to respond to demand for power generation equipment in the EU market, which is expected to expand significantly, through further enhanced locally tailored marketing activities in the region as well as active collaboration with European companies.
The new company, Mitsubishi Power Systems Europe, Ltd. (MPSE), will not only conduct order-taking activities for newly constructing thermal power generation plants but also provide after-sales services and promotes expansion of renewable energy business, such as and wind turbines and photovoltaic power generation systems. Future plans call for MPSE to expand its territory to cover the Middle East and Russia.
In the EU, as electricity demand surges due to economic growth, demand for power generation equipment for new power plants and for rehabilitation of aged plants is increasingly sharply. Against this backdrop, sales of gas and steam turbines are expected to treble in volume between 2006 and 2013. Investments into renewable energy applications such as wind turbines and photovoltaic power generation are also robust, supported by aggressive subsidizing policies throughout the region that today are making the EU the world's largest market.
MHI decided to establish a base in Europe dedicated to the power system business in order to respond swiftly and effectively to this rapid market expansion. In addition, the company has been accelerating cooperation with European companies in the power system business in various manners and needed to establish a local subsidiary to control these activities, too.
MHI's power generation systems have penetrated widely into the EU market through numerous power plant and plant equipment deliveries to date, and several projects are currently being negotiated. The company has already delivered about 30 units of its large-size steam turbines to local customers, including ENDESA in Spain. It has also delivered more than 30 gas turbines to the EU, mainly to the UK and Spain.
MHI has positioned power system operations as one of its core businesses in its current (2006) medium-term business plan, and it is targeting share expansion in the global market. The company has established Mitsubishi Power Systems Americas, Inc. (MPSA) in the U.S.A. in 2001 and Mitsubishi Power Systems (Asia Pacific) Pte. Ltd. (MPS-AP) in Singapore in 2006. The establishment of MPSE completes company's three-pole structure for overseas power system business in which MPSE will play an important role to boost the company's global business in the EU.
Outline of Mitsubishi Power Systems Europe, Ltd. (MPSE)
|Scope of business:||Order processing and servicing activities for power system products; and management of project execution and long-term service agreements (LTSA)|
|Products handled:||Gas turbines, steam turbines, boilers, wind turbines, photovoltaic and geothermal power generation equipment, marine diesels, and others.|
|Capitalization:||7 million pounds (approximately 1,645 million yen)|
|President:||Akio Fukui (currently overseeing European business at MHI's Power Systems Headquarters)|
|Number of employees:||25|
Business contact: Energy & Environment Power Systems Division