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MHPS to Transfer Entire Industrial-use Non-Reheat Thermal Power Facilities Business in Japan to MHPS-IDS
-- Aim to Function as a Total Solutions Provider in a Highly Maneuverable and Adaptable Organization --

No. 143

・ Reorganization will strengthen responsiveness to industrial-use customers as the final repositioning of the industrial-use business (announced May 9, 2017).
・ Allows combination with MHPS' AI and IoT technologies to provide customers with solutions as a corporate group.

YOKOHAMA, JAPAN (August 31, 2018) - Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has decided to transfer its entire industrial-use “non-reheat(Note)” thermal power facilities (equipment that does not utilize a steam reheat cycle) business in Japan to Mitsubishi Hitachi Power Systems Industries Co., Ltd. (MHPS-IDS), a wholly owned subsidiary of MHPS, based in Yokohama. The transfer will be conducted by means of an absorption-type company split agreement, effective January 1, 2019. The aim of this reorganization is to utilize the maneuverability of MHPS-IDS to provide industrial-use customers with solutions to resolve various issues.

Industrial-use thermal power facilities are comprised of boilers, turbine generators and other equipment that use fuel sources such as the gaseous byproducts from steel or chemical plants, petroleum residue from refineries, or liquid waste from paper mills. Many of these facilities have been in operation since Japan's period of rapid economic growth in the 1970s, and there are growing needs among customers with these systems to address a range of issues, including aging equipment, greater environmental consciousness, energy balance optimization, and the retirement of veteran workers. Also, in response to the global movement to cut CO2 emissions, there is growing demand for environmentally-friendly biomass thermal power facilities, of which construction plans are in progress.

In consideration of the circumstances, MHPS transferred the EPC (engineering, procurement, and construction) function of its domestic small-to-medium sized industrial business for non-reheat thermal facilities to MHPS-IDS in FY3/18, forming a joint enterprise. Now, by expanding the scope of services handled by MHPS-IDS to also include sales and after-sales services, we are strengthening our capabilities to provide rapid coordination and a total solutions function in order to accurately assess customers' needs.

MHPS is pursuing digital solutions such as MHPS-TOMONI™, which utilizes the Internet of Things (IoT) and artificial intelligence (AI) as a means of resolving energy-related issues, as well as solutions combining various types of equipment and new technologies related to thermal power facilities. Even after the business transfer, MHPS-IDS will function as a total solutions provider within the MHPS Group to help resolve various problems for customers with industrial-use thermal power facilities.

  • The non-reheat cycle is a system in contrast with a reheat cycle. A reheat cycle is a system that reheats the steam emitted from a high-pressure turbine in a boiler and sends it to a mid-to-low pressure turbine, while a non-reheat cycle is a system with no reheating. Industrial-use cogeneration systems burn diverse types of fuel, and utilize the steam and heat generated for production processes. Non-reheat cycle thermal power facilities are often used in these systems owing to their high economic efficiency and environmental benefits.