Asia/Pacific News
MHI in Chinese Diesel Engine Joint Venture
Japan's Mitsubishi Heavy Industries, Ltd. (MHI) and Shanghai Diesel Engine Co., Ltd. (SDEC) have launched a joint venture to sell industrial-use diesel engines in the Chinese market, MHI said in a press release.
The new company eventually plans to enter the gas engine market and expand its presence in China.
The joint venture, Shanghai MHI Engine Co. Ltd. (Shanghai MHI), which is capitalised at 200 million yuan ($32.2 million) and whose ownership divided evenly between the two companies, plans to build up a market share through "more competitively priced products," MHI said.
Shanghai MHI makes engines with power outputs between 500 and 1,600 kilowatts under a manufacturing and marketing license with MHI, and it uses SDEC's domestic network for procurement, marketing, and after-sale services.
The joint venture is aiming for annual sales of 10 billion yen ($100 million) within "several years" and eventually plans to double that number.
"In tandem with SDEC, MHI will provide support to get the JV's business on track quickly," MHI said.
MHI already has more than two dozen group companies in China, operating in various industries, according to its website.
