Siemens and Mitsubishi Heavy Industries (MHI) are setting up a joint venture for metallurgical industry and are forming a globally operating complete provider for plants, products and services for the iron, steel and aluminum industry. An agreement has just been signed. MHI will hold a 51-percent and Siemens a 49-percent stake in the joint venture. Subject to approval of the relevant authorities, the joint venture 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, Inc. (MH) – an MHI consolidated group company with equity participation by Hitachi, Ltd. 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 company’s headquarters will be located in the United Kingdom. The joint venture includes supply agreements for Siemens’ Industry Automation and Drive Technologies Divisions.
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. The new joint venture has a very solid regional set-up, thanks to the centers of competence of Siemens Metals Technologies in Central Europe and those of MHI in Asia.
The portfolios of the two partners ideally complement one another. While 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.