Hitachi, Mitsubishi Electric and Mitsubishi Heavy Industries Consolidate Hydroelectric System Businesses

Three major Japanese manufacturers, Hitachi, Ltd., Mitsubishi ElectricCorp., and Mitsubishi Heavy Industries, Ltd., have reached a basic agreement on the consolidation of their hydroelectric systems businesses, the companies announced on March 30, 2011.

In the coming years, hydroelectric power generation is expected to attract continuous demand as a clean renewable energy contributing toward the realization of a low-carbon society.. For Japanese manufacturers the business environment continues to be severe, however, due to competition against European manufacturers and expansion into overseas markets by Chinese manufacturers. Against this backdrop, Hitachi, Mitsubishi Electric and MHI reached a common recognition that the most effective means to strengthen and expand related business would be to pool their respective operating resources and engage jointly in hydroelectric power generation system operations.

The hydroelectric systems businesses of the three companies was spun-off from their main organizations and consolidated into the Preparatory Company, HM Hydro, Ltd. which was established in May 2011. The Preparatory Company is capitalized at 200 million yen, with an investment ratio of 98 percent from Hitachi and 1 percent each from Mitsubishi Electric and Mitsubishi Heavy Industries. The capital and equity distribution will be changed on October 1, 2011. Its scope of business includes marketing, plant engineering, installation and after-sale servicing of hydropower generation systems; development and design of core components (water turbines, generators, etc.) of hydropower generation systems.

Posted: 2011/07/11 06:00:15 AM