The move by Mitsubishi Heavy Industries Ltd. and Hitachi Ltd. to merge their thermal power businesses, announced Thursday, comes as domestic companies that construct power plants face increasing competition from foreign rivals.
The crisis at the Fukushima No. 1 nuclear plant has prompted reforms in the utility industry, forcing a change in the market for power systems that major domestic makers, including Mitsubishi Heavy and Hitachi, have dominated for years.
Amid the growing calls to phase out nuclear power, the Mitsubishi-Hitachi tieup could also trigger realignments involving plant makers and related industries.