Mitsubishi to establish new subsidiary for tyre machinery

Japanese company Mitsubishi Heavy Industries, Ltd. (MHI) has announced plans to establish a new subsidiary that will take care of its industrial machinery business, including rubber and tyre machinery. This new, wholly MHI-owned company will come into being on 1 April, 2012 and be created by integrating MHI’s industrial machinery business, which is currently operated by the company’s Industrial Machinery Business, Technology & Solutions Division, and three existing MHI group companies, including MEC Engineering Service Co., Ltd. (MEC).

MHI explains that the pertinent businesses of MHI’s Industrial Machinery Business, Technology & Solutions Division will be succeeded by MEC through a company split. At the same time, the companies Hiroshima Ryoju Engineering Co., Ltd., and Ryosen Engineers Co., Ltd. will merge with MEC. Through these initiatives, MHI says it aims to “establish an agile and strong business structure capable of responding to severe market environment changes, strengthen business and stabilise revenue bases.”

The new company will be headquartered in Nishi-ku, Hiroshima Prefecture, and will mainly handle marketing, design, manufacturing, installation and after-sale services for machineries such as material handling systems, rubber and tyre machinery, upstream equipment in iron-making and chemical industry-use machinery. MHI says the new company will shift its material handling systems and its rubber and tyre machinery production overseas to “allow domestic operations to focus on the enhancement of marketing and engineering capabilities.”

According to MHI, this latest company split is “in line with the initiative to integrate the various functions separately handled by MHI’s divisions and group companies into one with the aim of conducting speedy and effective business operations by eliminating duplicative work.” The newly established company will be directly managed by MHI’s Machinery & Steel Structure Systems business headquarters. The Industrial Machinery Business, Technology & Solutions Division will be dissolved.