Top Page | English | 简体中文 | 繁體中文 | 한국어 | 日本語
Tuesday, 9 May 2017, 13:58 HKT/SGT

Source: Mitsubishi Hitachi Power Systems, Ltd.
MHPS to Consolidate Gas Turbine, Large-scale Steam Turbine and Industrial Business Plants by Product
- Restructuring and Relocation of Domestic Manufacturing Bases Drives Post-merger Integration (PMI) Efforts -

- MHPS to consolidate core businesses around Takasago, Hitachi and Nagasaki sites
- Changes will enhance productivity and supply chain structure, reduce costs
- Process due to be implemented by end of FY2017

YOKOHAMA, Japan, May 9, 2017 - (JCN Newswire) - Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has today outlined plans for restructuring of its domestic manufacturing bases and business relocations among its Japan sites.

As part of MHPS' ongoing PMI efforts, the Company's gas turbine business will be consolidated at the Takasago Works in Hyogo Prefecture, while large steam turbines and water turbines will be consolidated at the Hitachi Works in Ibaraki Prefecture. MHPS's small-to-medium sized industrial business will be moved to the Nagasaki Works in Nagasaki City and to Mitsubishi Hitachi Power Systems Industries Co., Ltd. (MHPS-IDS), a wholly owned subsidiary of MHPS based in Yokohama.

It is expected that the restructuring initiatives will be largely complete by the end of fiscal 2017. By organizing plants by product type, MHPS intends to promote improvements in productivity and asset utilization, while reinforcing cost competitiveness through rationalization of the supply chain. This will support the Company's ongoing targets for global leadership in the field of thermal power generation systems and environmental equipment.

In the gas turbine business, the high-temperature parts manufacturing function at the Yokohama Works and the small to medium-sized gas turbine manufacturing function at the Hitachi Works will both be transferred to the Takasago Works. In addition, MHPS will consolidate EPC (engineering, procurement and construction), design and services within the Takasago Works. This excludes services for the Tokyo Bay region, which will remain at the Yokohama Works, due to its geographical advantages.

MHPS will also transfer the large-scale steam turbine and water turbine manufacturing functions from the Takasago and Nagasaki Works to the Hitachi Works. Quality assurance, procurement, design and services will also be consolidated at the Hitachi Works. In addition, MHPS is planning to consolidate the Takasago Works' nuclear power turbine manufacturing functions at the Hitachi Works in future, based on thorough assessments of market conditions and other factors.

For the small- and medium-sized industrial business handled at the Yokohama headquarters and other locations, the function for large output equipment "reheat" projects (which use a reheat cycle to increase thermal efficiency) will be transferred to the Nagasaki Works. This will allow MHPS to create a consolidated structure that will effectively utilize resources which are currently spread across different sites and combine them with manufacturing functions that have already been transferred to Nagasaki. In addition, MHPS will transfer the function for "non-reheat" projects (equipment projects that do not require a reheat cycle) to MHPS-IDS. This includes biomass power generation - a sector where demand is expected to grow in future.

Through reorganization of its domestic manufacturing bases and relocation of its businesses, MHPS aims to unify work procedures and systems; improve capacity utilization of production facilities; reduce fixed costs by disposing of unnecessary facilities; rationalize supply chains; and accelerate effective use of land assets. At the same time, the company will continue to work closely with local governments and other local stakeholders where each base is located, and pursue further synergies to promote strengthening of profitability and competitiveness in the global market.

About Mitsubishi Hitachi Power Systems, Ltd.

Mitsubishi Hitachi Power Systems, Ltd. (MHPS) was formed on February 1 2014, integrating the thermal power generation systems businesses of Mitsubishi Heavy Industries, Ltd. (MHI) and Hitachi, Ltd. in a quest to further enhance their social response capabilities in all respects. These include the technological strength to create new products of outstanding quality and reliability, the comprehensive strength in engineering to oversee projects in regions across the globe, and finely honed sales and after-sale servicing capabilities. MHPS aims to come out a winner in global competition and achieve a solid position as a world leader in thermal power generation systems and environmental technologies. For more information, please visit

Joseph Hood, PR Manager
Mitsubishi Heavy Industries, Ltd.
Tel: +81-(0)3-6716-2168
Fax: +81-(0)3-6716-5860

May 9, 2017 13:58 HKT/SGT
Source: Mitsubishi Hitachi Power Systems, Ltd.

Topic: Press release summary
Sectors: Energy
From the Asia Corporate News Network

Copyright © 2019 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

Mitsubishi Hitachi Power Systems, Ltd.
Apr 10, 2019 11:23 HKT/SGT
MHPS is Global Market Share Leader in 2018 for Flue Gas Desulfurization Systems
Apr 4, 2019 10:38 HKT/SGT
MHPS Signs TLA with CSIC Longjiang GH Gas Turbine (GHGT) on H-25 Series Gas Turbine Technology
Apr 3, 2019 13:37 HKT/SGT
MHPS Receives Order for Two H-25 Gas Turbines at Distributed Power Plant in Zhuhai, China
Mar 29, 2019 18:45 HKT/SGT
MHPS: Order Received for 1,026.3 MW Natural-gas-fired GTCC Power Plant for UAE's Emirate of Sharjah
Mar 12, 2019 12:36 HKT/SGT
MHPS' H-100 Gas Turbine Gains Momentum with Multiple Qualifications
Mar 12, 2019 11:21 HKT/SGT
MHPS to Use Drones for Inspecting Power Plant Boilers
Mar 5, 2019 12:33 HKT/SGT
MHPS Opens Branch Office in Dhaka, Bangladesh
Feb 28, 2019 16:07 HKT/SGT
MHPS Completes Work on Four Turbine Generation Units for Next-Generation Nuclear Power Plants in China
Feb 19, 2019 11:02 HKT/SGT
MHPS Receives Order from Chinese Steelmaker for M701S(DA)X Gas Turbine and Other Key Components for Thermal Power Generation
Feb 13, 2019 14:05 HKT/SGT
MHPS Is Global Market Share Leader in 2018 for Heavy Duty Gas Turbines by McCoy Reports
More news >>
 News Alerts
Copyright © 2019 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Privacy Policy | Terms of Use | RSS
US: +1 800 291 0906 | Beijing: +86 400 879 3881 | Hong Kong: +852 2217 2912 | Singapore: +65 6304 8926 | Tokyo: +81 3 6721 7212

Connect With us: