Mitsubishi and Hitachi set to form new power firm
Joint venture will see partnership on thermal power generation
Japan’s Mitsubishi Heavy Industries and Hitachi have announced the signing of an agreement to integrate their thermal power generation businesses. The move is aimed at creating a company that can better compete with international power rivals such as GE and Siemens.
Under the agreement, the pair will form a joint venture company by January 1 2014, with Mitsubishi taking a 65% stake and Hitachi taking the remaining 35% share.
The pair says that the business integration will help address “buoyant global demand for thermal power generation systems by harnessing superior technical skills, quality and reliability, with the aim of prevailing against intensifying global competition”. The companies are set to form an ‘Integration Preparation Committee’ to work on the requirements that need to be met to achieve the integration.
Mitsubishi has concentrated its power business in recent years on large-scale, high-efficiency gas turbines, whilst Hitachi has focused more on small and medium-sized turbine models.
The two companies have previously cooperated in areas including support for Tokyo Electric Power Company’s Fukushima Daiichi Nuclear Power Station and the integration of the hydroelectric power generation systems business.
A final agreement on the exact nature of the new business will be reached by late April of next year.