Mitsubishi Hitachi Power Systems Ltd., a joint venture integrating the thermal power businesses of two major Japanese manufacturers, began operating Monday.
President Takato Nishizawa said the company targets ¥2 trillion in sales by 2020, compared with the ¥1.1 trillion in combined sales from the thermal power operations of Mitsubishi Heavy Industries Ltd. and Hitachi Ltd.
In a meeting of senior officials at the headquarters in Yokohama, Nishizawa said the company wants to "become the world's leader in thermal power generation and environmental businesses."
To compete with industry leaders such as General Electric Co. of the United States and Siemens AG of Germany, the new joint venture will challenge them in Europe, the United States, South America, Russia and Africa, the former executive vice president of Mitsubishi Heavy said.
Of the 23,000 workers at the new company, 14,000 are from Mitsubishi Heavy and 9,000 from Hitachi.
Mitsubishi Heavy has a stake of 65 percent in the joint venture and Hitachi holds the remainder.
The new company, set up Saturday, will produce equipment for thermal and geothermal power plants, including gas turbines and generators.