TOKYO, Dec 26 (Reuters) – Mitsubishi Electric Corp ( 6503.T ) and Mitsubishi Heavy Industries Ltd ( 7011.T ) said on Monday they have agreed to form a joint venture to integrate their power generator businesses and to seek global expansion.
The tie-up plan between the sister companies comes after a power plant joint venture between Mitsubishi Heavy and electronics giant Hitachi Ltd ( 6501.T ) fell apart in 2020 following a dispute over a South African project.
The two aim to establish the power generator joint venture by April 1, 2024, with Mitsubishi Electric expected to own a majority.
The combined business will include core planning for the development, production and servicing of power generators directly connected to turbines and other facilities at power plants as the companies aim to decarbonize, they said.
“The demand for electricity is expected to increase due to economic growth mainly in developing countries… in the future, existing thermal power generation will decarbonize its systems by converting fuel into hydrogen, ammonia and other fuels without carbon,” the companies said.
Reporting by Kantaro Komiya Editing by Chang-Ran Kim, Alexandra Hudson
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