Mitsubishi Electric and Mitsubishi Heavy Industries announced that they will integrate their generator business, which is used in power plants of electric power companies, and are considering establishing a new joint venture by April the year after next.
According to the announcement, the two companies reached a basic agreement on the 26th to consider establishing a new joint venture by integrating the design, development, manufacturing and maintenance of generators.
The new company is scheduled to be established around April of the year after next, and Mitsubishi Electric is coordinating to invest in the majority of the shares.
Sales of the new company are expected to reach tens of billions of yen.
Both companies are engaged in the manufacture and maintenance of power generators used in thermal power plants, etc., but they want to improve efficiency through the integration and enhance their competitiveness by making use of the technologies and assets of both companies.
On the other hand, MHI will continue to manufacture turbines for nuclear power plants and thermal power plants, as well as business related to plant construction.
Both companies commented, "As the environment surrounding electric power is undergoing major changes around the world, we would like to take the opportunity of the realization of the integration to build a stronger partnership than ever before and expand our power generation business more globally."