Mitsubishi Heavy Industries Ltd. President Shunichi Miyanaga says his company hopes to increase annual sales of its planned joint company for thermal power generation equipment with Hitachi Ltd. to ¥2 trillion by the 2020 Tokyo Olympics.
The two companies will set up the new company in January. It will take over their thermal power equipment operations with combined annual sales of ¥1.1 billion. The new company will be owned 65 percent by Mitsubishi Heavy and the rest by Hitachi.
Miyanaga said in an interview Monday that he will “protect employment” and not eliminate personnel. He said redundant employees will be used to strengthen services and other operations.
The alliance between Mitsubishi Heavy, which has a large share of the market for large-scale gas turbines, and Hitachi, a major producer of small and medium-size gas turbines, will increase their product lines, Miyanaga said.
He also indicated Mitsubishi Heavy is keen to export nuclear power plants overseas, noting plans to tap new markets such as Vietnam because new construction is not expected for some time in Japan. For now, the company will focus on its new project in Turkey, he said.
Turning to a damages suit it faces in the United States, Miyanaga said Mitsubishi Heavy believes it will win. The company has been sued for $4 billion by a U.S. power utility over problems at its nuclear facilities.