Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has announced that from October it will merge with Babcock-Hitachi K.K. (BHK), a Yokohama-based company handling boilers and air quality control systems (AQCS).
MHPS says the aim of the merger is to bring enhanced speed to business management and achieve greater efficiency and cost competitiveness.
In February, Mitsubishi Heavy Industries and Hitachi formed MHPS - a new venture combines the global fossil businesses of both companies.
MHPS has now decided on a full merger with BHK, which it describes as "indispensable" to MHI and Hitachi's business integration because it will bring BHK's functions for core equipment into MHPS's organization. BHK, founded in 1953, offers high-efficiency boilers and high-performance AQCS, and has manufacturing and service networks not only in Japan but also including the Philippines, China and Australia.
Also effective October 1, Mitsubishi Hitachi Power Systems Engineering Co., Ltd. will merge with Bab-Hitachi Industrial Co., Ltd. (BHIC). Both companies are currently responsible for handling industrial thermal power generation systems, target the same user markets in Japan, and have mutually complementary product lineups.
MHPS Engineering will be the surviving company. It will be a wholly owned subsidiary of MHPS and aim to offer 'improved response' to the needs of a broad range of industrial users.
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