Tokyo, May 31, 2012 - (JCN Newswire) - This July Mitsubishi Heavy Industries, Ltd. (MHI) will establish a wholly owned financial subsidiary in New York that will manage the finances of MHI group companies operating in the US. The new company will play a key role in pursuing the goal of enhancing capital efficiency that is spelled out in MHI's "2012 Medium-Term Business Plan." By setting up the new company, MHI aims to enhance the capital efficiency and risk management of its North American operations. MHI also intends to establish financial subsidiaries in Europe and Asia and create a global financial management system operating in major currencies. The new company, MHI Capital America, Inc. (tentative name), will be capitalized at US$400 million and will carry out cash management and integrated financing for group companies, information gathering on financial market, and other finance-related activities that are currently being handled by Mitsubishi Heavy Industries America, Inc. (MHIA).
Since last year MHI has been working on building up an integrated global financial management system in order to improve the financial standing of MHI group and efficiency of capital. As the first step, MHI started cash management in the US, China and Europe, as it does in Japan, with its regional headquarters, such as MHIA, acting as administrative agent. As a result, MHI has reduced interest-bearing debt in the US and has ensured smooth financing operations in China despite that country's current monetary tightening. However, in order to create a truly global financial management system, MHI has seen the need for a new company specializing in such finance operations instead of those regional headquarters.
Going forward, MHI will work to have these financial subsidiaries coordinate with each other and create system to provide the financial expertise and supports needed by the company's rapidly expanding global business operations.
About Mitsubishi Heavy Industries
Mitsubishi Heavy Industries, Ltd. (TSE: 7011, 'MHI'), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 2,903.7 billion yen in fiscal 2010, the year ended March 31, 2011. MHI's diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems. For more information, please visit the MHI website at www.mhi.co.jp.
Mitsubishi Heavy Industries Hideo Ikuno firstname.lastname@example.org +81-3-6716-5277
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