MHI to open tyre machinery unit in China

ERJ staff report (DS)

Tokyo -- Mitsubishi Heavy Industries, Ltd. (MHI) is about to launch local production of tyre machinery in China with the establishment of a wholly owned subsidiary, Changshu Ryoju Machinery Co., Ltd. in Changshu, Jiangsu. The unit is due on stream in March, with deliveries beginning from the Summer.

The new company will start operations with 64 employees. Minoru Kimura of the Rubber & Tire Machinery Department, Industrial Machinery Business, Technology & Solutions Division at MHI's Machinery & Steel Structures Headquarters has been appointed General Manager.

The unit is capitalized at 450 million yen. MHI has had a small workshop there for some time, but has now expanded it following the acquisition of a plant building with a 5,000 square meter floor space within the Changshu Southeast Economic Development Zone.

Initially the Chinese plant will assemble kits of parts received from MHI's Industrial Machinery Business, Technology & Solutions Division in Hiroshima, the company intends to develop and cultivate of local suppliers, and will eventually manufacture parts at the plant. Plans call for manufacture of 40 units in the initial business year, increasing to about 160 units within three years.

Jun Umemura of MHI told ERJ, “MHI management decided that when the economical situation is so bad, then you should invest and expand."

MHI has a cooperation with local steel maker Baulin, so it expects to use high quality steel from its partner companies.

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Press release from MHI