Tokyo, Oct 13, 2009 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI) has concluded an agreement with the Electricity Generating Authority of Thailand (EGAT) to establish a joint venture company (JV) to provide repair services for gas turbine components that are exposed to very high temperatures. The agreement was signed in Bangkok on October 12. The new company, which will be established in November, will target the launch of a service factory in 2012.
The goals of the partners have meshed favorably. MHI's aim is to localize repair services in Thailand, where the gas turbine market is thought to have large growth potential, in order to enhance its services, including shortening of delivery times, and to extend its service capability throughout the Asia region, where sharp increases in demand are expected. EGAT, a major MHI customer, has been looking for ways to reduce maintenance/repair costs and also to cultivate local engineers in this field in an aim to expand into other Asian markets.
The new JV, to be known as EGAT Diamond Services, Co., Ltd., will be capitalized at approximately 600 million bahts, with EGAT, MHI, Mitsubishi Corporation and Ratchaburi Electricity Generating Holding PCL owning shares. The JV will build its repair plant in an industrial park near Bangkok and will initially offer repair services for combustor parts, and progressively expand its operations to turbine blades.
Gas turbines require inspection, maintenance and replacement of the parts that operate under very high temperatures at its annual periodical inspection. In tandem with expanded sales of gas turbines, demand for repair of these parts, which are vulnerable to severe damage due to very high temperatures, is increasing globally. In order to firmly capture the global demand, it has been essential for MHI to establish a service structure that are closely linked to local customers, including collaboration with major users, in each region - Americas, Europe/Middle East and Europe, and to satisfy market's needs, such as delivery time shortening, at the same time enhancing the level of services on offer.
MHI has delivered more than half of the large-size gas turbines owned by EGAT and more than 20 units to Thailand. As many gas turbine business opportunities are expected in the future in Thailand, the JV will be well positioned to pursue the collaborative merits of the two companies.
By further enhancing its technological expertise in maintenance and establishing an integrated follow-up structure from new delivery to after-sales service, through combination of the two companies' strength - EGAT's operational know-how as a power producer and MHI's technological expertise, going forward MHI will step up its aggressive marketing activities in expanding large-scale power generation system market in Thailand and other Asian countries.
About Mitsubishi Heavy Industries
Mitsubishi Heavy Industries, Ltd. (TSE: 7011, 'MHI'), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers. MHI's diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems. For more information, please visit the MHI website at www.mhi.co.jp.
Contact:
Mitsubishi Heavy Industries
Hideo Ikuno
h.ikuno@daiya-pr.co.jp
+81-3-6716-5277
Oct 13, 2009
Source: Mitsubishi Heavy Industries
Mitsubishi Heavy Industries (TSE: 7011) (U.S: MHVYF)
From the Japan Corporate News Network
http://www.japancorp.net
Topic: Press release summary
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