Hitachi, Mitsubishi Heavy Merge Thermal Power Businesses

Late Thursday (or perhaps early Friday morning, depending on where you were), Japanese industrial conglomerates Hitachi and Mitsubishi Heavy Industries announced an agreement to integrate their Thermal Power Generation businesses into a new joint venture. The new business, to be formed by January 1, 2014, will be owned 65-35 by Mitsubishi Heavy and Hitachi, respectively.

Hitachi and Mitsubishi Heavy already cooperate in other heavy industrial areas, including steel production machinery, overseas railway systems, and hydroelectric power generation.

The two companies say their thermal power businesses are in many ways complementary. For example, Mitsubishi Heavy specializes in large gas turbines, while Hitachi does small- and medium-gas turbines. Geographically, Mitsubishi Heavy is strong in Southeast Asia and the Middle East, while Hitachi has advantages in Europe and Africa.

Hitachi's Power Systems unit had $10.1 billion in annual sales in the fiscal year ending in March. Mitsubishi Heavy's Power Systems unit did $11.6 billion in the same year. These businesses included revenues from such activities as wind, hydroelectric, and nuclear, in addition to thermal.

 

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2133672, ~/Articles/ArticleHandler.aspx, 10/1/2014 8:22:21 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement