MHI to Transfer Ownership Stake to MEG

Mitsubishi Heavy Industries, Ltd. (MHI) yesterday concluded an agreement with Miyaji Engineering Group, Inc. (MEG) whereby, effective April 1, 2015, MHI will transfer a 51% ownership stake in Mitsubishi Heavy Industries Bridge & Steel Structures Engineering Co., Ltd. (MBE), a group company, to MEG. Simultaneously, a shareholders agreement was also concluded between MHI and MEG.

The Japanese market for social infrastructure is currently very robust, with strong demand in widespread evidence for projects to spur recovery in regions affected by the Great East Japan Earthquake, for upgrades to the nation's rapidly aging infrastructure, for new expressways and Shinkansen (bullet train) lines, and for facilities of various kinds in the runup to the 2020 Tokyo Olympic Games. Against this backdrop, the market relating to bridge structures, which has been lackluster in recent years, is also expected to gradually get on a recovery track in the years ahead.

For many years MHI, MBE, MEG and Miyaji Engineering Co., Ltd. (MEC), a MEG subsidiary, have worked together on projects involving steel structures, etc., and in the process they have built up strong ties of trust and cooperation. All four parties share the belief that in order to achieve sustained growth and development of their bridge operations going forward, it will be necessary for them to pool and enhance their technological capabilities further and to boost their profitability through managerial streamlining and efficiency improvements. Based on this common perception, on November 7, 2013 the four companies concluded a basic agreement toward forming a business tieup in bridge operations. After subsequently taking a variety of possibilities under consideration, it was decided that MHI will yield a 51% ownership stake in MBE to MEG effective April 1, 2015.

Going forward, the four companies will continue to pool their respective fields of specialization based on their track record in steel structures and to reap optimal synergies in terms of technological strength, marketing capabilities and cost competitiveness. In partnership they will continue to probe ways to achieve further business development in all aspects of bridge operations, including not only new bridges but also large-scale repair and upgrading projects.

The company name of MBE is slated to change to MM BRIDGE Co., Ltd., effective April 1, 2015.