MHI, Siemens Establish Production Machinery Joint Venture

Posted by Eric Haun
Wednesday, May 07, 2014
Photo courtesy MHI

Today Mitsubishi Heavy Industries, Ltd. (MHI) concluded an agreement with Siemens AG of Germany calling for the establishment of a joint-venture company (JV) in steel and metal production machinery effective as of January 2015 subject to regulatory approvals.

According to MHI, the move has two aims: expansion of the product line in the steel and metal production machinery business and acceleration of globalization. The JV will swiftly take steps to put in place a structure enabling the provision of a full lineup of products involved in everything from upstream to downstream processes, and to build a business network that will span the entire globe, in a quest to provide more valuable products and services to customers in the worldwide steel and metal production machinery market.

The new JV will be established in the United Kingdom integrating Mitsubishi-Hitachi Metals Machinery, Inc. (MH) - an MHI consolidated group company with equity participation by Hitachi, Ltd. and IHI Corporation - and Siemens MT Business, Siemens group companies undertaking metals production in countries including Germany, Austria and the U.S. Equity ownership shares in the new venture will be 51% for MH and 49% for Siemens. The JV’s CEO is currently being selected.

Under the current plan, the new JV will operate six regional bases in Japan (Tokyo/Hiroshima), Austria (Linz), Germany (Erlangen), the U.S. (Pittsburgh), China (Shanghai) and India (Mumbai) enabling worldwide coverage. Business units for each product line will be based respectively in Tokyo/Hiroshima, Linz or Erlangen, and other existing business bases of MH and Siemens will operate under Tokyo/Hiroshima or Linz based on product line responsibility. The U.K. Headquarters will manage the regional bases, including respective business units, and will hold a cross division function in charge of sales/marketing, customer management, procurement, manufacturing, R&D planning, etc. to support each business location. The new JV will operate with a collective staff of approximately 9,000 employees.

In October 2013 MH, which had been initially launched in October 2000 as a joint venture of MHI and Hitachi, completed an integration with IHI Metaltech Co., Ltd. in the area of rolling mills. MH thereby acquired capabilities in product areas from continuous casting, hot and cold rolling, and bar steel rolling to downstream continuous annealing and galvanizing equipment. Now, through the JV with Siemens, MH will add upstream blast furnaces and electric furnaces to its product portfolio, significantly enhancing its ability to supply products for all metals production processes through expanding the product line.

MH and Siemens also complement each other substantially with respect to geographic areas in which they excel, a factor that will now enable acceleration of worldwide business expansion including Asia, Europe, Russia, the Americas, Africa, etc. Also, by pursuing synergy merits from MH's knowhow in project management and Siemens's abundant expertise in product servicing as integrated mechanical / electrical supplier, expansion of business opportunities will be sought.

Going forward, the global iron and steel industry, beset by adverse factors including overcapacity, increasing material costs and declining product prices, is projected to continue exercising restraint toward new capital investments. Against this backdrop, the agreement on the new JV was achieved on the back of the meshing of the two partners' respective aims: MHI and the Japan side looking to strengthen their business through enhancement of product offerings and the development of a global network of business bases, and Siemens eager to improve its steel and metal production machinery business structure as it undertakes a review of its business portfolio.

MHI and Siemens said they will both work closely with the new JV and offer full support to its business development.

mhi-global.com
 


People & Company News

MN100: MarineCFO

The Company: Founded in 1992, UA Business Solutions was a pioneer in the field of Enterprise Resource Planning (ERP) and an early Microsoft Partner. The ERP evolution

MN100: All American Marine, Inc.

The Company: All American Marine Inc. was founded in 1987 and specializes in the construction of custom tailored aluminum boats from 30 to 150 feet LOA. Today,

Five Minutes with Paul Switzer

Five minutes with Paul Switzer - Manager, Shipbuilding & Offshore, Viega   For readers not familiar with Viega, please give a ‘birds eye’ view, putting the company

Contracts

ACE Winches Bags Order from Vard

Deck machinery specialist ACE Winches said it has been awarded a spooling contract with Vard Group AS for Norway’s largest construction vessel.   The scope of work includes the spooling of two 3,

Fugro, US Army Corps of Engineers Ink Mapping Deal

Fugro has been awarded a photogrammetric and LIDAR surveying and mapping contract by the U.S. Army Corps of Engineers, St. Louis District, Missouri. The agreement

Nakilat Upgrades VSAT Service for LNG/LPG Fleet

Nakilat, the shipping arm of Qatar’s liquefied natural gas sector, has entered into a contract with Global Eagle Entertainment Inc.’s Emerging Markets Communications

Shipbuilding

MN100: All American Marine, Inc.

The Company: All American Marine Inc. was founded in 1987 and specializes in the construction of custom tailored aluminum boats from 30 to 150 feet LOA. Today,

ACE Winches Bags Order from Vard

Deck machinery specialist ACE Winches said it has been awarded a spooling contract with Vard Group AS for Norway’s largest construction vessel.   The scope of work includes the spooling of two 3,

Five Minutes with Paul Switzer

Five minutes with Paul Switzer - Manager, Shipbuilding & Offshore, Viega   For readers not familiar with Viega, please give a ‘birds eye’ view, putting the company

Ship Repair & Conversion

Royal IHC Upgrades TSHD Pump for Van Oord

Royal IHC informs it has completed the upgrade of the underwater pump and jet water system on trailing suction hopper dredger (TSHD) VOLVOX TERRANOVA for Van Oord.

Five Minutes with Paul Switzer

Five minutes with Paul Switzer - Manager, Shipbuilding & Offshore, Viega   For readers not familiar with Viega, please give a ‘birds eye’ view, putting the company

MN100: Metal Shark Boats

The Company: Metal Shark is a leading shipbuilder specializing in the design and production of boats and ships for military, law enforcement, fire rescue, and

Marine Materials

Five Minutes with Paul Switzer

Five minutes with Paul Switzer - Manager, Shipbuilding & Offshore, Viega   For readers not familiar with Viega, please give a ‘birds eye’ view, putting the company

Essar’s Vizag Port Terminal Boost Third Party Business

Post the taking over of Vishakhapatnam Port Trust’s (VPT's) Iron Ore Handling Complex (OHC) on a Build-Operate-Transfer (BOT) basis for a period of 30 years in May’ 15,

MN100: Voith Turbo

The Company: Voith Turbo specializes in the design, manufacture and servicing of high performance driveline equipment. From drive components to electronic drive systems,

News

US Navy Ships Conduct Astern Replenishment-at-sea

“While replenishments-at-sea are routine, astern refueling is unique and requires precise navigation and coordination,” said Lt. Cmdr. Jason Ileto, fleet replenishment scheduler for Commander,

US Offshore Lease Sale Yields $18 Mln in High Bids

Today’s U.S. oil and gas Lease Sale 248 garnered $18,067,020 in high bids for 24 tracts covering 138,240 acres in the Western Gulf of Mexico Planning Area, announced

Another Hurdle for The Ocean Alliance

Commissioner William P. Doyle of the U.S. Federal Maritime Commission today voted in favor of requesting additional information from The Ocean Alliance parties.

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | 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: 0.1643 sec (6 req/sec)