Mitsubishi In China Joint Venture
Mitsubishi Heavy Industries, Ltd. (MHI) and Shanghai Diesel Engine Co., Ltd. (SDEC), have announced an joint venture agreement to manufacture and market diesel engines in China. The new venture, called Shanghai MHI Engine Co., Ltd., is scheduled to begin manufacturing and marketing in December of this year.
Ownership of Shanghai MHI Engine, which will be headquartered in Shanghai, will be divided equally between MHI and SDEC. The joint venture will manufacture industrial diesel engines rated 500 to 1600 kW under a manufacturing and marketing license from MHI. The joint venture’s procurement, marketing and aftersale service will use SDEC's domestic network.
MHI said it has sought to build its share in the rapidly expanding Chinese market, while SDEC has been aiming to launch a full-scale entry into the market for industrial diesels with outputs of over 500 kW. The interests of the two companies thus meshed and led to the conclusion of the joint venture agreement, said a statement from MHI.
MHI said the JV also intends to enter into gas engine market in future and will aggressively pursue new market opportunities such as this, aiming at further expanding its presence in the Chinese market.
For more information: www.mhi.co.jp/en