New Mitsubishi subsidiary to handle rubber and tire machinery

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New Mitsubishi subsidiary to handle rubber and tire machinery
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Tuesday, February 14, 2012
1 n. s% j/ N- Q7 H+ H9 G9 BTokyo, Japan - Mitsubishi Heavy Industries will establish a new subsidiary to handle the industrial machinery business, including material handling systems and rubber and tire machinery, effective April 12. The new company, to be wholly-owned by MHI, will be created by integrating the industrial machinery business, currently being operated by the Industrial Machinery Business, Technology & Solutions Division of MHI, and three existing MHI group companies, including MEC Engineering Service Co., Ltd. (MEC). Today, MHI and MEC signed an absorption-type company split agreement, and MEC and two other MHI group companies signed an absorption-type merger agreement. Through this initiative, MHI aims to establish an agile and strong business structure capable of responding to severe market environment changes, strengthen business and stabilize revenue bases. Specifically, the pertinent businesses of MHI’s Industrial Machinery Business, Technology & Solutions Division will be succeeded by MEC, a wholly-owned MHI subsidiary, through a company split. At the same time, Hiroshima Ryoju Engineering Co., Ltd. and Ryosen Engineers Co., Ltd. will merge with MEC. The new company will locate its head office in Nishi-ku, Hiroshima City, and will mainly handle marketing, design, manufacturing, installation and after-sale services for machineries such as material handling systems, rubber and tire machinery, upstream equipment in iron-making and chemical industry-use machinery. The new company will be capitalized at 1,000 million yen. Kazuo Iida, currently president of Ryosen Engineering, will serve as the president of the new company. Of the new company’s businesses, the material handling systems and rubber and tire machinery concerns will shift their production overseas to allow domestic operations to focus on the enhancement of marketing and engineering capabilities. For the upstream equipment in iron-making, the company will focus on development and accelerate commercialization of related products. In chemical industry-use machinery, they will strengthen design capability and expand the production of large-sized chemical machinery and heat exchangers.