MHI’s multi-business union to marginally impact automotive space

Japan’s Mitsubishi Heavy Industries (MHI) has apparently expressed an interest in integrating two of its key group companies, namely, MHI Automotive Thermal Systems, Ltd. and MHI Thermal Systems, Ltd., that will commence operations as a joint venture, beginning, January 1, 2018.

For the uninitiated, Mitsubishi Heavy Industries, Ltd., is a large and diverse organization encompassing several divisions such as general machinery, ship building, power plants, air conditioning and aerospace. The company’s air conditioning business seems to have gained significant traction lately, having particularly made its mark as a niche segment in the overall automotive and transportation industry. As per experts, this progress can be specifically credited to the light weight, compact, and energy efficient automotive thermal systems manufactured by the company, which are dedicated exclusively to servicing the automotive and transportation industry.

With this integration, MHI aims to strengthen its global competitiveness through the consolidation of resources and technologies in automotive air conditioning systems and air conditioning & refrigeration (AC&R). The company’s ongoing strategy of integrating its two divisions is also likely to focus on improving value creation and on building more resilient management, cite sources.

In a scenario where the automotive and transportation arena is defined by lucrative projects, MHI’s integration strategy is expected to enhance the synergy benefits from car air conditioning business and the company’s other air-conditioning and refrigeration system operations. As per sources, Mitsubishi Heavy Industries Thermal Systems, Ltd., the new company is expected to reassure quicker decision making and increased operational efficiency that would strengthen its stance in terms of revenue generation and competitiveness, in the automotive and transportation market.

In other news underlining the developments in automotive and transportation industry, Mitsubishi Heavy Industries Ltd. and Boeing Co., have recently announced an agreement to cut costs in the production of wings for the 787 Dreamliner. Under this new agreement, MHI will pursue increased efficiency in its supply-chain management and production systems through automation, lean production methods and other activities.