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MHI and MHPS to Reorganize their Manufacturing Plants in Nagasaki Handling Defense & Space Systems and Thermal Power Systems
-- Facilities to be Consolidated by Product to Boost Global Competitiveness --

Mitsubishi Heavy Industries, Ltd.
Mitsubishi Hitachi Power Systems, Ltd.

Tokyo, July 23, 2015 -- Mitsubishi Heavy Industries, Ltd. (MHI) and Mitsubishi Hitachi Power Systems, Ltd. (MHPS) have taken decisions to reorganize, respectively, their Nagasaki Shipyard & Machinery Works and Nagasaki Works. The coordinated decisions are aimed at further strengthening global competitiveness, particularly in terms of technologies, costs and efficiency, by pursuing higher productivity through consolidation of their manufacturing sites by product: at MHI in the area of defense and space systems, and at MHPS in operations involving thermal power generation systems. The reorganization initiatives are slated for completion by the end of March 2018.

At MHI's Nagasaki Shipyard & Machinery Works, operations in special machinery and equipment for the Ministry of Defense and Japan Aerospace Exploration Agency (JAXA) will be consolidated in order to strengthen the manufacturing base and to configure a potent intelligence security system. Specifically, all operations currently performed at the Saiwaimachi Plant - including machining, and assembly and testing of equipment installed on naval vessels - will be transferred to the Isahaya Plant in order to consolidate the manufacture of underwater equipment and naval vessel installations for the Ministry of Defense and space equipment for JAXA in the plant. At the same time, the management and engineering divisions currently located at the Main Plant at Akunoura will also be shifted to the Isahaya Plant.

At MHPS's Nagasaki Works, the functions of the steam turbine and boiler manufacturing divisions, presently dispersed among the Akunoura, Koyagi and Saiwaimachi Area production bases, will respectively be consolidated at one location each as a way of pursuing enhanced speed and efficiency in plant operation. At the Akunoura Area, where steam turbine manufacturing will be consolidated, the machining and assembly lines will be reconfigured; also higher productivity in the manufacture of MET turbochargers for marine diesel engines will pursued. At the Koyagi Area, where boiler manufacturing functions will be consolidated, an integrated production system will be put in place for integrated coal gasification combined cycle (IGCC) gasifiers.

Going forward MHI and MHPS will continue to dedicate their resources to strengthening their competitiveness in the global markets by pursuing further efficiency upgrades at their Nagasaki Shipyard & Machinery Works and Nagasaki Works, including analysis of ways to make optimal use of their Saiwaimachi Plant and Saiwaimachi Area facilities after their respective transfers of operations have been completed.

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