MHI to Launch New Company Dedicated to Car Air-Conditioner Business, Aiming to Further Accelerate Global Business Development.

Tokyo, May 31, 2012 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI) has decided to establish a new company dedicated exclusively to car (automotive) air-conditioner business. The new wholly owned subsidiary will begin operations in January 2013, carrying on pertinent business from MHI's Air-Conditioning and Refrigeration Systems business headquarters. With creation of the new company MHI aims to establish a resilient and robust business structure to enable agile response to changes in the business conditions and operating environment of this fiercely competitive market. Through this initiative MHI looks to respond with alacrity to rapid automotive market growth in the emerging countries as well as to accompanying intensification in price competition of car air-conditioner products, and also seeks to accelerate global business development activities in a quest to secure a solid position in competition against existing companies dedicated to car air-conditioner business.

Initially MHI will establish a preparatory company to conduct activities focused on car air-conditioner business. In 2013 this unit will take over pertinent business operations which will be carved out from MHI through a company split, and establish a structure fully dedicated to car air-conditioner business.

The new company will be comprehensively engaged in engineering, manufacturing, and sales of car air-conditioner products and service parts. The head office will be located within MHI's Air-Conditioning and Refrigeration Systems business headquarters in Kiyosu-city, Aichi Prefecture, with operations to commence with about 300 employees. Through various measures, including strategically focusing on markets expected to mark strong demand for electric and hybrid vehicles, the new company will aim to achieve annual sales of 60 billion yen within three years.

For some time MHI has recognized the need to establish a resilient and dynamic management structure in its car air-conditioner business in tandem with the escalating demand to strengthen cost competitiveness and expand overseas production in order to respond to the globalization of automobile production by customers, rapid market expansion in the emerging economies, and the sustained strength of the yen. The decision to establish a dedicated new company is MHI's way of responding to these multiple challenges, seeking further expansion of its car air-conditioner business through the achievement of more resilient and robust business operations and a business structure better.

MHI will work with the new company closely after its establishment, and it is committed to supporting the unit's business development fully by further enhancing the synergy benefits from car air-conditioner business and its other air-conditioning and refrigeration system operations.

About Mitsubishi Heavy Industries

Mitsubishi Heavy Industries, Ltd. (TSE: 7011, 'MHI'), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 2,903.7 billion yen in fiscal 2010, the year ended March 31, 2011. 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. For more information, please visit the MHI website at www.mhi.co.jp.

Source: Mitsubishi Heavy Industries

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Mitsubishi Heavy Industries
Hideo Ikuno
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