Mitsubishi Heavy Industries to Integrate its Engineering Biz to Strengthen Group Structure to Promote Energy Transition

Mitsubishi Heavy Industries Ltd (MHI) is planning to integrate the business operations of Mitsubishi Heavy Industries Engineering Ltd (MHIENG) in itself effective from April 1, next year.
 
Under an absorption-type merger, the operations of MHIENG would be taken over by MHI under the direct management of its president and CEO.
 
The integration will further accelerate the “Energy Transition” that serves as one of MHI Group’s central growth engines, the company said in a statement.

Earlier, MHI Group announced plans to substantially increase its corporate value by 2030 with “Energy Transition” and “Smart Infrastructure (New Mobility & Logistics)” serving as the company’s two growth engines.
 
To strengthen its Energy Transition business, the development of a CO2 solutions ecosystem is a component of major importance, it added.
 
Today, carbon capture, utilization and storage (CCUS) is garnering attention as an effective means for realizing a carbon neutral society.
 
Also, ammonia is recognized to be effective both as a fuel for ships and thermal power plants, where its usage results in reduced carbon emissions, and as a means for transporting hydrogen, and the market for ammonia is expected to grow sharply in the coming years.
 
In response, MHI is now pursuing a broad array of initiatives for establishing markets for carbon-free hydrogen and ammonia, including the development of a hydrogen ecosystem and partnering with external incubation investments. The company is also fortifying its capabilities in integrating multiple product areas.

MHIENG was launched in January 2018 as an MHI Group company. Today it provides world-class technologies in the engineering, manufacture, procurement, construction, marketing and after-sale servicing of chemical plants, transportation systems, carbon capture systems, etc.
 
Furthermore, besides its prowess in carbon capture technologies, MHIENG has abundant experience in applications involving ammonia and hydrogen.
 
Following its integration into MHI, MHIENG’s project management capabilities in chemical plants and transportation systems, together with its core technologies in value chain development, will be organically combined with MHI’s technologies.
 
The resulting comprehensive capabilities will further accelerate MHI Group’s solutions businesses in both Energy Transition and New Mobility & Logistics.