MHI To Strengthen Small Turbo Production Capacity

Posted on April 1, 2008

Mitsubishi Heavy Industries, Ltd. (MHI) said it intends to nearly double its production capacity in small-size turbochargers from the current 3.6 million units a year to 6.9 million by the end of fiscal year 2011. The production capacity increase aims to respond to rapidly increasing demand for turbochargers amidst the widening adoption of tighter emission controls around the world.

To increase production capacity, MHI will add a new plant dedicated to turbocharger production at the Main Plant of the company’s General Machinery & Special Vehicle Headquarters in Sagamihara, which serves as the control tower of its global operation. The company will also establish a new manufacturing company in Thailand and expand its plant in the Netherlands. With this production structure encompassing Japan, Europe and Asia, MHI said it will achieve the capability to respond promptly to demand from customers worldwide. The total investment outlay for this initiative, including land acquisition costs, is approximately $392 million.