Mitsubishi Electric and Mitsubishi Heavy Industries to integrate generator business

TOKYO, Dec 26 (Reuters) – Mitsubishi Electric Corp (6503.T) and Mitsubishi Heavy Industries (7011.T ) said on Monday they had agreed to form a joint venture to integrate their generator businesses and seek global expansion. .

The plans for the partnership between the sister companies come after a thermal power plant joint venture between Mitsubishi Heavy Industries and electronics giant Hitachi Ltd (6501.T ) fell apart in 2020 over a South African project dispute.

The two companies aim to form the generator joint venture by April 1, 2024, in which Mitsubishi Electric is expected to have a majority stake.

The combined business will involve basic planning to develop, manufacture and service generators that are directly connected to turbines and other facilities at power plants, they said, as the utility aims to decarbonize.

“Electricity demand is expected to increase due to economic growth mainly in emerging countries…In the future, existing thermal power generation will decarbonize its systems by fuel conversion to hydrogen, ammonia and other carbon-free fuels,” the companies said.

Reporting by Kantaro Komiya Editing by Chang-Ran Kim and Alexandra Hudson

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