Name and Location
Mitsubishi Heavy Industries (MHI) turbocharger production capacity expansion project.

Client
MHI.

Project Description
To strengthen its global turbocharger production capacity, MHI is targeting a structure enabling the production of ten-million units a year.

In the first stage, the company intends to invest ¥11-billion in its overseas production facilities to boost its worldwide production capacity from the current 5.8-million units a year to 8.9-million by 2015.

A significant portion of the total sum will be allocated to Mitsubishi Turbocharger Asia (MTA), a wholly owned turbocharger subsidiary in Thailand, to further strengthen MTA’s production structure for cartridges, the core components of turbochargers.

Specifically, yearly cartridge production capacity will be increased to more than 2.5-fold by 2015 through the substantial expansion of parts processing lines and cartridge assembly lines. The cartridges produced at MTA will be supplied to MHI’s final assembly facilities in Europe and China, among others. In addition, final assembly lines will also be substantially increased to double production capacity by 2015.

Further, MHI plans to increase subsidiary Shanghai MHI Turbocharger Co’s (SMTC’s) capitalisation and to progressively expand its production lines by increasing SMTC’s turbocharger production capacity about threefold by 2015 and fourfold in 2016.

In the US, MHI is establishing a local turbocharger production facility in Indiana – Mitsubishi Engine North America – a wholly owned engine and turbocharger marketing subsidiary serving North America. The commercial production launch is aimed for 2014. The production plant will function as a key base in MHI’s global turbocharger production structure. Under the investment programme, the plant’s production capacity will be about 600 000 turbochargers a year, to be progressively doubled by 2016.

Value
¥11-billion.

Duration
The expansion programme will run until 2016.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
MHI General Machinery & Special Vehicles, tel +81 42 761 1101 or fax +81 42 763 0800.