Mitsubishi Heavy Industries Ltd. and Hitachi Ltd. said Thursday they will merge their thermal power generation and other power production businesses to boost competitiveness in the global market amid growing demand.
The two companies plan to consolidate their thermal power operation into a new company to be established in January 2014. The new company will be owned 65 percent by Mitsubishi Heavy and 35 percent by Hitachi, they said in a statement.
The operations to be merged include geothermal generation and their fuel battery business, with combined sales of about 1.1 trillion yen, they said.
The move comes as demand for thermal power generation is increasing in emerging markets including China. The two companies said they will pursue synergy effects as Mitsubishi Heavy has strength in Southeast Asia and the Middle East, while Hitachi is strong in Europe and Africa.
