Mitsubishi Electric and Mitsubishi Heavy Industries Reach a Basic Agreement to Start Detailed Studies for Business Integration for Power Generator Systems

Rhea-AI Summary

Mitsubishi Electric and Mitsubishi Heavy Industries have announced a basic agreement to establish a joint venture focused on power generator systems, with Mitsubishi Electric expected to be the majority shareholder. This move aims to enhance their market competitiveness in response to increasing electricity demand and the need for carbon-neutral solutions. The collaboration seeks to integrate technologies and assets, advancing the companies' initiatives towards decarbonizing thermal power generation and contributing to a carbon-neutral society.

Positive

• Formation of a joint venture to integrate power generator businesses.
• Mitsubishi Electric to hold majority stake, enhancing control.
• Collaboration targets carbon-neutral solutions in energy generation.

Negative

• None.

TOKYO--(BUSINESS WIRE)-- Mitsubishi Electric Corporation (TOKYO: 6503, “Mitsubishi Electric”) and Mitsubishi Heavy Industries, Ltd. (TOKYO: 7011, “Mitsubishi Heavy Industries”) announced today that the two companies have reached a basic agreement to establish a joint venture to integrate their businesses in fields focused on power generator systems.

It is expected that Mitsubishi Electric will be the majority shareholder and Mitsubishi Heavy Industries will be the minority shareholder of the new company.

Climate change caused by global warming has emerged as a common issue worldwide, and efforts to achieve carbon-neutrality, which would reduce greenhouse gas emissions to net zero, are accelerating around the world.

Electricity demand is expected to increase due to economic growth mainly in emerging countries and awareness of energy security, and energy transitions has increased. In the future, existing thermal power generation will decarbonize its systems with fuel conversion to hydrogen, ammonia, and other carbon-free fuels.

Large-scale power plants that have supported the power infrastructure so far will play an important role as a force to adjust for the increase in variable renewable energy sources, whose power generation is affected by weather and other factors.

Considering this market environment, Mitsubishi Electric and Mitsubishi Heavy Industries have reached this basic agreement to strengthen their market competitiveness further by integrating their respective businesses and combining their respective technologies and assets. This business integration will create a stronger partnership than ever before and expand the two companies’ power generator systems on a global scale, thereby contributing to the realization of a carbon-neutral society.

For the full text, please visit: www.MitsubishiElectric.com/news/

View source version on businesswire.com: https://www.businesswire.com/news/home/20221225005004/en/

Media inquiries

Mitsubishi Electric Corporation

Public Relations Division

prd.gnews@nk.MitsubishiElectric.co.jp



Mitsubishi Heavy Industries, Ltd.

Corporate Communication Department

mediacontact_global@mhi.com

Source: Mitsubishi Electric Corporation

FAQ

What is the purpose of the joint venture between Mitsubishi Electric and Mitsubishi Heavy Industries?

The joint venture aims to integrate their businesses in power generator systems to enhance market competitiveness and contribute to carbon-neutral solutions.

When was the joint venture between Mitsubishi Electric and Mitsubishi Heavy Industries announced?

The joint venture was announced recently, with a basic agreement reached today.

What role will Mitsubishi Electric play in the new joint venture?

Mitsubishi Electric is expected to be the majority shareholder in the joint venture.

What is the significance of this joint venture for the energy sector?

This joint venture is significant as it aims to address rising electricity demand while promoting decarbonization in the energy sector.

How will this agreement affect the companies' competitiveness?

The agreement is designed to strengthen market competitiveness by combining technologies and resources of both companies.