July 02, 2012 No.1552
Tokyo, July 2, 2012 - Effective October 1st Mitsubishi Heavy Industries, Ltd. (MHI) will launch a new company into which business development functions currently conducted at the company's subsidiaries in Singapore will be integrated. Plans call for MHI Industrial Engineering & Services Private Ltd. (MIES), a wholly owned local subsidiary, to take over operations of two other MHI subsidiaries in the city-state. In the move, MIES will be assigned new functions as a global business center to support expansion of MHI's global business operations by concentrating diverse information at the new company for sharing among its various business sectors.
MIES, which currently engages mainly in environmental and chemical plant business, will take over and integrate the functions of two other local firms: the business development and administrative & management (personnel, IT and procurement) functions for MHI's Shipbuilding & Ocean Development and Air-Conditioning & Refrigeration Systems business activities from Mitsubishi Heavy Industries Singapore Private Ltd. (MHISP), and the business development functions for Power Systems operations from Mitsubishi Power Systems (Asia Pacific) Private Ltd. (MPS-AP). In preparing for the launch of the new company, today the three companies signed a merger agreement. To back the new initiative, MHI intends to increase MIES's capitalization.
The new company is being planned to perform a wide range of activities as a business development base for MHI's Shipbuilding & Ocean Development, Air-Conditioning & Refrigeration Systems, and Power Systems businesses. These will be in addition to various areas now handled by MIES: namely, EPC (engineering, procurement and construction) operations such as CO2 recovery systems, gas/oil production facilities and chemical plants, as well as business operations involving material handling and water treatment systems and equipment. Plans also call for the new company in the future to strengthen administrative and management functions, such as general affairs & personnel, material procurement, and accounting & finance, and to extend support to MHI group companies in the ASEAN and Oceania regions on those matters.
By those initiatives MHI looks to strengthen and accelerate its business development activities globally, including the ASEAN and Oceania regions.
Currently MIES is conducting aggressive marketing and business development activities in Southeast Asia and the Middle East. The Singapore government has recognized these activities as a boon to promotion of the city-state's exports. Also, a project being handled by MIES was recently granted export (comprehensive) insurance by Nippon Export and Investment Insurance (NEXI). Together these events lent further support to the proposal to have MIES serve as the succeeding company in the integration.
MHI will work closely with the new company and fully support the development of its business.
Outline of MHI Industrial Engineering & Services Private Ltd. (MIES)
President: Kazuitsu Ito
Scope of business: Marketing and services for chemical plants, including fertilizer & petrochemical; coal, oil and gas production facilities;
environmental plants & equipment, including CO2 recovery plants; and other products of Machinery &
Steel Infrastructure products of MHI.
Capital: 2.4 million Singapore dollars (100% owned by MHISP)
Outline of Mitsubishi Heavy Industries Singapore Private Ltd. (MHISP)
President: Makoto Hosono
Scope of business: Marketing, procurement, parts sales and after-sales services for MHI products
Capital: 6.2 million Singapore dollars (100% owned by MHI)
Outline of Mitsubishi Power Systems (Asia Pacific) Private Ltd. (MPS-AP)
President: Hiroyuki Iwase
Scope of business: Serves as regional headquarters of MHI's Power Systems business in Southeast Asia. Handling of new projects related
to products of Power Systems, parts sales, after-sales services, etc.
Capital: 1.77 million Singapore dollars (100% owned by MHISP)
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