Mitsubishi Heavy Industries and Hitachi merge thermal business
Mitsubishi Heavy Industries and Hitachi have decided to merge their thermal business, including geothermal energy activities of both companies, under a new entity to be established by January 2014.
Reported from Japan, Mitsubishi Heavy Industries (MHI) and Hitachi Ltd. have announced they will merge their thermal power generation and other power production businesses.
With this move, both companies expect to boost competitiveness for the growing demand in the global power markets.
The consolidation will see a new company being established by January 2014, with MHI holding 65 percent and HItachi 35 percent.
The merged operation will include fuel batter business, but also their geothermal generation business. The combined sales of the companies currently is at Yen 1.1 trillion ($13 billion).
The geographic synergies by a merger are seen given the strength of MHI in Southeast Asia and the Middle East and Hitachi in Europe and Africa. Emerging markets, including China, are seen as a great market for the merged activities.