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MHPS to Take Over Business in Thermal Power Systems For Industrial Use in Japan Currently Performed by Mitsubishi Hitachi Power Systems Engineering
-- Measure Being Taken in Response to Fully Opening Electricity Market for Competition --

No. 031

Yokohama, January 30, 2015 -- Effective April 1, Mitsubishi Hitachi Power Systems, Ltd. (MHPS) will take over the business in thermal power systems for industrial use in Japan currently handled by its group company Mitsubishi Hitachi Power Systems Engineering Co., Ltd. The measure will be taken in response to the rapid expansion and diversification of the market as it will be opened for full competition. It also has the dual aims to further strengthen business efficiency and competitiveness.

The thermal power systems business targeting Japanese industrial applications which is currently performed by Mitsubishi Hitachi Power Systems Engineering will be transferred by means of a company split-off. MHPS will form a business structure capable of responding swiftly and precisely to huge changes in the business environment in Japan, and will pursue development of business in small and medium-scale power market. In addition, by unifying Mitsubishi Hitachi Power Systems Engineering's resources with its own, MHPS will build a strong business structure responding to the diverse needs of all customers in the world.

Under the new business consolidation plan, some business of Mitsubishi Hitachi Power Systems Engineering - e.g., small-scale boiler plants - will be excluded from the transfer to MHPS. Mitsubishi Hitachi Power Systems Engineering will continue to accommodate market demand for those items.

After the Great East Japan Earthquake, the demand for industrial power generation systems has been expanding in the Japanese market, for their supply to newly emerged power suppliers as well as in-house power generation applications. At the same time, the power generation projects has rapidly diversified to include coal-fired plants, biomass generation, feed-in tariff (FIT) schemes, etc. In order to provide one-stop service to the customers with convenience and full satisfaction, it has become necessary to establish a structure to provide comprehensive business operations, which also brings benefit of price competitiveness. The transfer of operations from Mitsubishi Hitachi Power Systems Engineering to MHPS was decided with a view of responding to those changes in the business environment and the business opportunities in the future.

Mitsubishi Hitachi Power Systems Engineering is an MHPS group company that handles all aspects of business involving thermal power systems for Japanese industrial uses, from sales, engineering and construction to after-sale servicing, comprehensively. The company evolved from MHI Plant Engineering Co., Ltd., which was launched in April 2012 integrating four MHI group engineering enterprises. The company adopted its present name in February 2014 together with the launch of MHPS, and it is contributing to the society in the current business field from October 2014 after the merger with Bab-Hitachi Industrial Co., Ltd.

MHPS has a comprehensive range of products for use in power systems and can provide total solutions in all areas of power generation. Going forward the company will continue to respond with fine precision to a broad spectrum of customer needs in the power systems market in its ongoing quest to contribute to the development of countries and regions the world over.

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