MHI to Implement Corporate Reorganization

Press Release
Wednesday, February 27, 2013

Effective April 1 Mitsubishi Heavy Industries, Ltd. (MHI) will implement a complete reorganization of its corporate sector. The move, which is aimed at taking current reforms that integrate all company business operation structures into a system of business divisions one step further, targets enhanced sophistication and efficiency in carrying out corporate affairs. In this way MHI will pursue the achievement of a stronger framework for supporting the globalization of the company's various business divisions.

Specifically, functions of the company's various works relating to management auditing, accounting, procurement and information technology (IT) will be reorganized directly under the oversight of the Head Office. Functions pertaining to general affairs, personnel, corporate communication and legal matters, all of which demand response closely linked to their respective regions, will remain within the organizational domain of the works; however, when the nature of a business process demands, these functions will be concentrated at the Head Office or the regional block or undergo transfer to Group companies. These initiatives will enable enhanced sophistication and efficiency in conducting the various corporate functions.

Under the reorganization, the company works will become organizations focused on such functions as general affairs and personnel. However, insofar as works that answer to the General Machinery & Special Vehicles, Air-Conditioning & Refrigeration Systems, and Machine Tool business divisions are concerned (i.e. Sagami Machinery Works, Nagoya Air-Conditioning & Refrigeration Machinery Works and Ritto Machinery Works), because these works will undergo decreases in their respective workforce scales, their organization will be discontinued and they will be consolidated into their pertinent business division.

The forthcoming reorganization of MHI's corporate sector is a further progression from the strengthening of the company's business operations structure implemented in April 2011. Until that time, both the business headquarters (primarily in charge of sales functions, deciding business policies for each product) and company works (chiefly in charge of production functions and also possessing all corporate functions: management auditing, general affairs, personnel, corporate communication, legal affairs, accounting, procurement, IT, etc.) operated as independent organizational units. Then in April 2011, in a quest to achieve greater flexibility and mobility in product businesses, the functions and organizations of the works having to do with the execution of business were transferred to the various business divisions, and a unified companywide organization was created capable of integrated oversight and execution of company business.

The corporate sector meanwhile maintained its earlier organizational structure involving the Head Office and company works but strengthened cross-divisional functions such as companywide strategy functions. However, because that arrangement maintained the traditional organizational structure for the Head Office and works, it kept the most appropriate aspect of the works. It was for that reason that the company judged that it was necessary to further reconsider the corporate sector at this time.

Today MHI is striving to push its globalization drive more widely and with greater speed than earlier based on its "2012 Business Plan," under which the company is taking its first steps toward becoming an enterprise marking robust earnings of 5 trillion yen a year. On the back of this latest reorganization of its corporate sector, the company now looks to realize further efficiency in this sector and to enhance its support of globalization developments with unprecedented strength and speed.


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