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September, 2004
MHI Consolidates Wind Turbine Production Lines into New Facility
-- 60% Capacity Boost in Response to Growing Demand --

MHI has built a new facility dedicated to wind turbine production at the Koyagi plant of its Nagasaki Shipyard and Machinery Works. The aim in creating the new facility is to enable fully integrated wind turbine production, from material receiving to final shipment. Start-up is slated for October 1.

Integration is being achieved by consolidating production lines previously dispersed at multiple locations into a single site. The resulting expansion in production capacity will respond to increasing orders for wind turbines from both domestic and overseas customers, and will allow MHI to shorten delivery schedules and reduce production costs through economy of scale. With the completion of operational integration and expansion, wind turbine production capacity will reach 480 units per year, up roughly 60%.

The new facility encompasses two relocated production plants: one dedicated to blade manufacture (10,000 m2), relocated in April 2004, and an adjoining facility (5,000 m2) for making nacelles, components which house generators and blade control devices. Integration of production facilities enables streamlined handling of materials, parts and products as well as fully integrated management from order processing to shipment. In this way MHI will be able to respond more flexibly to the market environment.

As a comprehensive manufacturer of energy-related heavy machinery, MHI develops, builds and markets a wide array of power generation plants and equipment, including thermal, nuclear and geothermal power plants, hydraulic turbines, solar cell power systems and fuel cells. In recognition of the benefits of wind turbines as an environmentally friendly and renewable energy source, the company has decided to boost its initiatives in this area. In line with that decision, MHI has already strengthened its marketing base for wind turbines in the U.S. and launched blade production in Mexico. Simultaneous with these production and sales reinforcement moves, the company has also newly developed Japan's largest wind turbine, featuring a rated output of 2.4 MW (megawatts); verification facilities are presently under construction. Strengthening of production capacity at Nagasaki is one more element of this new company focus.

MHI is Japan's only manufacturer of large-size wind turbines. The company introduced its first commercial wind turbines in 1982 and currently supplies products in a range from 600 kW to 2 MW. To date it has received orders for 1,679 units in total – 1,522 from overseas and 157 in Japan. Completion of the new production facility in Nagasaki will spur this momentum further.

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