Mitsubishi Electric Corp (6503.T) and Mitsubishi Heavy Industries Ltd (7011.T) said on Monday they have agreed to establish a joint venture to integrate their power generator businesses and seek global expansion.
The tie-up plan between the sister companies comes after a thermal plant joint venture between Mitsubishi Heavy and electronics giant Hitachi Ltd (6501.T) fell apart in 2020 after a dispute over a South African project.
The two aim to set up the power generator joint venture by April 1, 2024, with Mitsubishi Electric expected to own a majority.
The combined business would involve basic planning to development, manufacturing and servicing of power generators connected directly to turbines and other facilities at power generation plants as utilities aim to decarbonise, they said.
"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 with fuel conversion to hydrogen, ammonia, and other carbon-free fuels," the companies said.
