Mitsubishi Heavy Industries, Ltd. (MHI) announced the organization of a company dedicated to the handling of marine machinery and marine diesel engine business as of October 1, 2013. Through this initiative, MHI aims to accelerate its global business development activities and expand market share of MHI technology-based products in the marine machinery and engine sector.
The new entity, which will be headquartered in Nagasaki and have business bases in Nagasaki, Kobe, and Tokyo, will handle development, design, marketing, after-sales service, and licensing activities for marine machinery and diesel engines. Marine related procurement and manufacturing will continue to be handled by MHI and partner companies. In addition to business development in Japan, the new company will aggressively promote licensing to overseas companies and the establishment of joint ventures in Korea, China and other markets. By enabling responsive and efficient management and close interaction with customers and markets, the company will be able to compete more aggressively on the global stage.
The marine machinery and engine market has experienced a cycle of rapid expansion and contraction caused by growth in demand from China and emerging economies, followed by a sharp decline due to the effects of the global financial crisis in 2008. To respond to these severe market fluctuations, MHI implemented a variety of measures including the launch of Project MEET, which focused on energy savings and environmental responsiveness, increased globalization through alliances with overseas companies, and the expansion and strengthening of after-sales service business. The implementation of a strong and responsive new organizational structure represents a further extension of the above-stated measures, and is expected to accelerate global business development capabilities by enabling prompt provision of attractive marine machinery and engine offerings that are uniquely tailored to meet customer needs.
In implementing the new organizational structure, MHI Diesel Service Engineering Co., Ltd. (MHI-DSE), MHI's wholly owned subsidiary in Hyogo Prefecture, Japan, will take on relevant businesses from MHI and consolidate them into the new entity. MHI-DSE, established in 1977, has until now provided support services for diesel engines handled by MHI, and will draw on this expertise in the future. In effecting the consolidation, MHI-DSE will move its head office to Nagasaki, and change its company name as of October 1, 2013, to begin operations under the new organizational structure.
Moving forward, MHI will closely collaborate with the new company to optimize group business operations and support new business development.