New Mitsubishi Acquisition

Mitsubishi Heavy Industries, Ltd. to acquire industrial power generation company Pratt & Whitney Power Systems, agreement signed with United Technologies

Posted on December 17, 2012

Mitsubishi Heavy Industries Ltd. (MHI) has concluded an agreement with United Technologies Corporation (UTC) of the U.S.A. under which MHI will acquire Pratt & Whitney Power Systems (PWPS), the small and medium-size gas turbine business unit of aero-engine manufacturer Pratt & Whitney (P&W). MHI and UTC, P&W's parent company, signed the agreement in early December.

PWPS engages primarily in the engineering, assembly and sales of aero-derivative gas turbines and also provides gas turbine services and engineering, procurement and construction services of related power generation systems. The company has approximately 430 employees. PWPS owns a majority share of Turboden s.r.l. of Italy, a manufacturer of Organic Rankine Cycle (ORC) turbines, which will also be included as part of the acquisition.  

MHI, which has focused its gas turbine business principally on large-capacity, high-efficiency systems, will significantly diversify its power generation product portfolio with the acquisition of PWPS. PWPS's aero-derivative gas turbines are known, especially for emergency power generation applications, for their compact design and rapid start-up time, with over 1700 units delivered to date worldwide. Going forward, significant growth is anticipated in applications requiring a flexible power source complementary to a renewable-energy power source, the company said.

Robust market demand is also expected as small power sources for application in emerging markets. PWPS's main products to date have been 30 MW class machines, but currently the company is developing new 60 MW class models, which are expected to boost PWPS's market share significantly.

PWPS U.S. operations will be aligned with Mitsubishi Power Systems Americas Inc. (MPSA), headquartered in Lake Mary, Florida, U.S.A. MPSA President Koji Hasegawa said, "The PWPS business offers tremendous synergy with our existing U.S. operations.  It significantly diversifies our equipment offering and compliments the scope of our service business.