MHI to split machine tools business in October
26 May 2015
Tokyo-based Mitsubishi Heavy Industries (MHI) today said it would spin off its machine tools business to Mitsubishi Heavy Industries Machine Tool Sales Co in Osaka, "in an absorption-type company split."
With this, MHI's machine tools business will be absorbed by Mitsubishi Heavy Industries Machine Tool Sales Co. The deal comes into effect from 1 October.
Mitsubishi said the spin off aims to enhance responsiveness to changes in market demand and to expedite corporate decision-making by integrating machine tool manufacturing and marketing into a single entity, effectively increasing the company's ability to compete in the global market.
Mitsubishi Heavy Industries Machine Tool Sales Co. the successor company of machine tool business, will move its head office from Osaka to the current Machine Tools Division Office in Ritto, Shiga Prefecture.
With machine tool business assets transferred from MHI, it will become a company with more than 1,000 employees.
According to MHI, the demand structure of the machine tool market has undergone dramatic change in Japan and other countries.
In order to cope with this changed business environment, machine tool companies have tried to enhance their competitiveness through expeditious decision-making that leverages their strengths as dedicated machine tool companies.
Also, in order to expand their business, companies have had to increase their management flexibility and responsiveness to customers.
Making a fresh start as a dedicated machine tool company, Mitsubishi Heavy Industries Machine Tool Sales Co, as the successor company, will implement a flexible management structure that expedites decision making, clarifies business responsibility, enhances responsiveness to changes in market environment and customer needs, and accelerates the strengthening and expansion of its business.
"Moving forward, MHI will closely liaise with the successor company and fully support its business development," MHI said.
Mitsubishi Heavy Industries, headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers.
MHI's diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems.