MHI to Acquire Pratt & Whitney Power Systems

Press Release
Thursday, December 13, 2012

Small and Medium-size Gas Turbine Business Unit of P&W -- Agreement Signed with United Technologies, U.S. Conglomerate --


Mitsubishi Heavy Industries, Ltd. (MHI) has concluded an agreement with United Technologies Corporation (UTC) of the U.S. under which MHI will acquire Pratt & Whitney Power Systems (PWPS), the small and medium-size gas turbine business unit of Pratt & Whitney (P&W), an aeroengine manufacturer. Earlier this week, MHI and UTC, P&W's parent company, signed the agreement.

PWPS engages primarily in the engineering, assembly and sales of aero-derivative gas turbines and also provides services of gas turbines and engineering, procurement and construction of related power generation systems. The company has approximately 430 employees. By the acquisition, Turboden s.r.l. of Italy, a manufacturer of Organic Rankine Cycle (ORC) turbines and an affiliate company of PWPS, will also become an affiliate of MHI.


MHI, which has focused its gas turbine business principally on large-capacity, high-efficiency systems, will significantly diversify its power generation product portfolio with the acquisition of PWPS. PWPS's aero-derivative gas turbines have been highly acclaimed, especially for emergency power generation applications, for their compact design and rapid start-up time, with over 1,700 units delivered to date worldwide. Going forward, significant growth is anticipated in applications requiring a flexible power source complementary to a renewable-energy power source. Robust market demand is also expected as small power sources for application in emerging markets. PWPS's main products to date have been 30MW (megawatt) class machines, but currently the company is developing new 60MW class models, which are expected to boost PWPS's market share significantly.


Turboden's ORC turbines have the capability to generate power or supply hot water using a relatively low-temperature heat source, e.g. biomass, factory waste heat or geothermal energy. Until now the company has sold more than 300 units in 20 countries, primarily in Europe. In Japan, increasing opportunities are emerging to use this technology in biomass and geothermal applications.


For many years MHI and P&W have been in a collaborative relationship in aeroengine production, including recent joint development of the new jet engine for the Mitsubishi Regional Jet. After acquisition of PWPS, we will maintain our collaborative relationship in the supply of engine parts for gas turbines and development of new machines as MHI targets expansion in aero-derivative gas turbine business.


In its 2012 Medium-Term Business Plan, a comprehensive three-year plan launched this fiscal year, MHI set a basic policy calling for full utilization of its strengths and synergy effects through consolidation and restructuring of all operations into four business domains – "Energy & Environment" and "Defense & Aerospace," for example – and to accelerate global business development in a quest to expand its business scale to the 5 trillion yen level. Among the four business domains, the company now considers Energy & Environment of highest importance, and its new business plan calls for concentrated investment of management resources into this area as a way of achieving business scale expansion rapidly. The acquisition of PWPS falls in line with this initiative.


In its gas turbine business, MHI is presently establishing a global structure to substantially increase manufacturing capacity of large high temperature high-output gas turbines annually. In addition to output from its Takasago Machinery Works in Japan, shipments have now also begun from MPSA's Savannah Machinery Works, a new gas turbine manufacturing and service facility located in Pooler, Georgia. With the addition of flexible and reliable small and medium-size offerings to its product portfolio through the acquisition of PWPS, MPSA will now be able to meet broader customer needs through combinations of those units and high-efficiency machines.


Going forward, MHI intends to further strengthen its marketing activities for gas turbines, which offer clear benefits in terms of efficient energy usage and reduction of environmental burdens, leveraging the merits of both large-capacity and aero-derivative gas turbines as well as their synergy effects.

Maritime Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Evergreen Line's Ital Lunare to Make Maiden Call in Boston

As part of the new service linking North Asia and the U. S. East Coast (NUE2), Evergreen Line's containership Ital Lunare will make the first ever direct call into

FARO 3D Documentation Conference

The FARO 3D Documentation Conference, to be held October 13-15, 2014, was created as a forum for sharing knowledge, best practices and insight into the world of laser scanning and 3D documentation.

Elco Launches Electric Outboard Motor Line

Expansion into outboard category brings benefits of electric propulsion to even more boaters Elco Motor Yachts, a company in electric and hybrid marine propulsion for more than 120 years,

Environmental

Oil Spills into Ohio River from Coal Plant

The U.S. Coast Guard closed a 15-mile stretch of the Ohio River on Tuesday after at least five thousand gallons of fuel oil spilled from a 60-year-old power plant owned by Duke Energy near Cincinnati,

Reflex Marine, Fano Kran Partner

Reflex Marine continues to expand its global network of Accredited Service Centers with its latest addition, Fano Kran-Service A/S (Fano Kran) located in Denmark.

OceanSaver Reports Surge in BWT Orders

OceanSaver said it has received a rush of ballast water treatment (BWT) system orders for large vessels. The Norwegian firm, a BWT specialist developing solutions since 2003,

Energy

First Oil in Salamander FSO at Bualuang Field

Salamander announces that first oil has been received in the tanks of the newly converted Suksan Salamander Floating Storage and Offtake Vessel (“FSO”) at the

Delivery & Naming of Atlantic Offshore´s ERRV – Ocean Marlin

On August, 13th the delivery and naming ceremony of our last construction, the ERRV C722- Ocean Marlin - for Atlantic Offshore was performed. The event was held in the Norwegian town of Stavanger,

Scorpio Tankers on Major Fleet Expansion

Scorpio Tankers Inc. (NYSE: STNG) (the "Company") announced today that it has reached an agreement with an unrelated third party to purchase an MR product tanker

Fuels & Lubes

Oil Spills into Ohio River from Coal Plant

The U.S. Coast Guard closed a 15-mile stretch of the Ohio River on Tuesday after at least five thousand gallons of fuel oil spilled from a 60-year-old power plant owned by Duke Energy near Cincinnati,

NOC to Load First Oil in a Year from Es Sider

Libya is due to start loading its first crude oil tanker in a year from top port Es Sider on Tuesday following a year-long blockade by eastern federalists, a Libyan

DBR to Deliver Custom Gas Genset for Platform E17a-A

DBR Generatorsets is on course to complete construction of a gas engine driven generator set for GDF SUEZ E&P Nederland B.V. in time for installation on the E17a-A platform at the end of the year.

Marine Power

Elco Launches Electric Outboard Motor Line

Expansion into outboard category brings benefits of electric propulsion to even more boaters Elco Motor Yachts, a company in electric and hybrid marine propulsion for more than 120 years,

Laborde Now a Steyr Motors Distributor

To help increase business and provide even better service for its customers, Laborde Products has been chosen as a Steyr Motors distributor. The company will offer sales,

DBR to Deliver Custom Gas Genset for Platform E17a-A

DBR Generatorsets is on course to complete construction of a gas engine driven generator set for GDF SUEZ E&P Nederland B.V. in time for installation on the E17a-A platform at the end of the year.

LNG

Liquiline to Construct Denmark's First LNG Bunker Terminal

Liquiline says it has entered into a contract with Fjord Line to design, construct and commission an LNG ship bunkering terminal for Fjord Line AS at the Port of Hirtshals, Denmark.

Faster Approvals for LNG Export to Non-FTA Countries

Liquefied Natural Gas Limited has advised that the U.S. Department of Energy has revised procedures that could result in faster approval of applications to export

PetroChina Reviews Push for Transport LNG

China's biggest energy firm PetroChina is reviewing its multi-billion-dollar push to produce liquefied natural gas (LNG) to fuel trucks and ships in place of diesel,

News

CEVA Expands Presence in Los Angeles Market

CEVA Logistics, one of the world’s leading supply chain management companies, today announced the expansion of its Los Angeles (LAX)/Torrance freight management operation.

First Oil in Salamander FSO at Bualuang Field

Salamander announces that first oil has been received in the tanks of the newly converted Suksan Salamander Floating Storage and Offtake Vessel (“FSO”) at the

Delivery & Naming of Atlantic Offshore´s ERRV – Ocean Marlin

On August, 13th the delivery and naming ceremony of our last construction, the ERRV C722- Ocean Marlin - for Atlantic Offshore was performed. The event was held in the Norwegian town of Stavanger,

Mergers & Acquisitions

CEVA Expands Presence in Los Angeles Market

CEVA Logistics, one of the world’s leading supply chain management companies, today announced the expansion of its Los Angeles (LAX)/Torrance freight management operation.

Delivery & Naming of Atlantic Offshore´s ERRV – Ocean Marlin

On August, 13th the delivery and naming ceremony of our last construction, the ERRV C722- Ocean Marlin - for Atlantic Offshore was performed. The event was held in the Norwegian town of Stavanger,

Scorpio Tankers on Major Fleet Expansion

Scorpio Tankers Inc. (NYSE: STNG) (the "Company") announced today that it has reached an agreement with an unrelated third party to purchase an MR product tanker

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1741 sec (6 req/sec)