Siemens and Mitsubishi Heavy Industries (MHI) will cooperate in the field of metallurgical industry and are forming a globally operating complete provider for plants, products and services for the iron, steel and aluminium industry.
MHI will hold a 51-percent and Siemens a 49-percent stake in the joint venture which will start operations in January 2015.
Both partners are contributing their metallurgical industry activities to the joint venture. The new joint venture will integrate Mitsubishi-Hitachi Metals Machinery (MH) – an MHI consolidated group company with equity participation by Hitachi and IHI Corporation.
Siemens and MHI ideally complement one another with regard to their product portfolios, production know-how and geographical spread.
The new joint venture with approximately 9,000 employees will focus fully on business with iron, steel and aluminum-producing industry. The bundling of competencies will result in a joint venture that is better able to compensate for market fluctuations.
Regionally, the steel market has strongly shifted to Asia. Over 50 percent of the world’s steel production now takes place in China, with growing competition also through local technology providers. Drawing on the centers of competence of Siemens Metals Technologies in Central Europe and those of MHI in Asia, the new
joint venture has a regional set-up.
The technology strengths of Siemens Metals Technologies lie in particular in iron and steel production, casting, automation, environmental technologies and lifecycle services, MHI’s technology competence is primarily focused on hot and cold rolling, processing as well as production expertise.
By combining both portfolios, the joint venture aims to offer its customers the entire value chain in iron, steel and aluminium production, from technologies for processing raw materials to surface finishing at the end of the production process, as well as the related lifecycle service competencies.
[Image: Mitsubishi Heavy Industries]