Mitsubishi Electric Corp. said Thursday it has set up a subsidiary in Beijing to boost sales of energy systems and engineering services in the Chinese market, where steady growth is expected.
With the establishment of Mitsubishi Electric Power & Electrical Infrastructure Systems (Beijing) Co., the electrical machinery company plans to raise energy-system revenues in China to more than ¥30 billion in fiscal 2017 from ¥20 billion in the business year through March.
Capitalized at $3 million, the subsidiary plans to open branch offices in Shanghai and Guangzhou to enhance ties with local business partners, expand repair and maintenance services and promote entry into new businesses, such as smart grids.
The new company will start operations in December.
China is forecast to replace North America as the area with the world's largest power generation capacity by 2020, backed by its plan to boost power-generation facilities, Mitsubishi Electric said.