Mitsubishi Heavy Industries and Hitachi settled in South Africa's thermal power generation business December 18 21:46
Mitsubishi Heavy Industries and Hitachi, Ltd. settled the thermal power generation business in South Africa, which had been fighting for the burden of loss, with Hitachi paying 200 million yen to Mitsubishi Heavy Industries.
Mitsubishi Heavy Industries and Hitachi merged the thermal power generation business five years ago to establish a joint venture. However, after that, Mitsubishi Heavy Industries requested Hitachi to pay over 770 billion yen for a large loss in the construction of the power generation facilities that Hitachi's subsidiary received an order for in South Africa before the integration.
On this issue, the two companies announced on the 18th that the settlement was settled. According to the agreement, approximately 35% of the shares of the joint venture owned by Hitachi will be transferred to MHI, leaving the company away from management. Hitachi will then pay a settlement of 200 billion yen to Mitsubishi Heavy Industries.
Both companies announced their comments on the settlement, and MHI said, “We are delighted that the two companies have sincerely discussed and have settled in a form that both sides agree with. I want to complete the project. "
Hitachi also said, “I am delighted that the long-standing issues have been settled in a way that satisfies both parties. We will continue to work with Mitsubishi Heavy Industries to provide maintenance services for the thermal power generation business.”
In order to record an extraordinary loss associated with the settlement, Hitachi will revise its earnings forecast for the fiscal year ending March 31, 2009, and the final profit will decrease by 190 billion yen from 360 billion yen to 170 billion yen. It became a prospect.