Mitsubishi Hitachi Power Systems (MHPS) has agreed to transfer its entire industrial-use ‘non-reheat’ thermal power facilities business to Mitsubishi Hitachi Power Systems Industries (MHPS-IDS) in Japan.


Image: The transfer will be conducted through an absorption-type company split agreement. Photo courtesy of rawpixel on Unsplash.

MHPS-IDS is a subsidiary of MHPS, based in Yokohama.  The transfer will be conducted through an absorption-type company split agreement, which will be effective from next January.

The reorganization move is aimed at utilising the maneuverability of MHPS-IDS to provide industrial-use customers with solutions to resolve various issues.

Industrial-use thermal power facilities include boilers, turbine generators and other equipment that consume fuel sources such as the gaseous byproducts from steel or chemical plants, petroleum residue from refineries, or liquid waste from paper mills.

MHPS stated that many of these facilities were in operation since Japan’s period of rapid economic growth in 1970s. There is a growing need among consumers with these systems to address a range of issues such as aging equipment, greater environmental consciousness, energy balance optimization and the retirement of veteran workers.

Another main reason is the growing demand to cut down on CO2 emissions and to use environmentally-friendly biomass thermal power plants, whose construction plans are in progress.

Considering the circumstances, MHPS has transferred the engineering, procurement, and construction (EPC) function to its domestic small-to-medium sized industrial business for non-reheat thermal facilities to MHPS-IDS, to form a joint enterprise.

MHPS stated: “Now, by expanding the scope of services handled by MHPS-IDS to also include sales and after-sales services, we are strengthening our capabilities to provide rapid coordination and a total solutions function in order to accurately assess customers’ needs.”

Presently, the company is pursuing digital solutions such as MHPS-TOMONI which use Internet of Things (IoT) and artificial intelligence (AI) to resolve energy-related issues, along with solutions that combine various types of equipment and new technologies related to thermal power facilities.