MHI-Hitachi basic agreement on thermal power generation

Mitsubishi Heavy Industries and Hitachi reached a basic agreement recently on integrating and jointly managing businesses in fields centered on thermal power generation systems. The two companies plan to consolidate their respective thermal power generation system operations within a joint venture company by January 1, 2014. MHI and Hitachi will take equity interests of 65 percent and 35 percent, respectively, in the company.

font-family:"Times New Roman","serif"\">The global market has continued to expand, driven by the growth engines of China and other emerging countries. Heightened environmental awareness around the world has presented a major opportunity for font-family:"Times New Roman","serif"\">MHI and Hitachi to expand businesses where they both excel - businesses that solve global energy and environmental issues at the same time. These sources of demand require that companies respond font-family:"Times New Roman","serif"\">with highly advanced technologies, \"unfettered by the traditional frameworks of companies.\" In this regard, they must be able to harness engineering capabilities as well as sales and service capabilities font-family:"Times New Roman","serif"\">closely tied to each region.

font-family:"Times New Roman","serif"\">In the thermal power generation field, the two companies both have expansive product lineups. For example, in gas turbines, MHI has focused on efficient large models in recent years. font-family:"Times New Roman","serif"\">Meanwhile, Hitachi sees its mainstay products as small and medium-sized models. Regionally, MHI has strengths mainly in Southeast Asia and the Middle East, while Hitachi has harnessed font-family:"Times New Roman","serif"\">its strengths in markets such as Europe and Africa. The two partners will strive to leverage the complementary strengths of both companies. Moreover, the two companies will further enhance font-family:"Times New Roman","serif"\">their ability to address customer needs and provide services by taking advantage of their respective strengths in providing total solutions across all aspects of thermal power plants.

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