5 July 2010 - Hitachi, Mitsubishi Electric and Mitsubishi Heavy Industries have reached a basic agreement calling for the three companies to initiate concrete discussions toward consolidation of their hydroelectric power generation system operations.
In a statement, the three companies said that going forward they would look to jointly establish an operational company and build up a coherent business structure by integrating their various activities pertaining to hydroelectric power generation systems, including marketing, servicing, engineering, development and design, in order to further develop the business aggressively.
In the coming years, hydroelectric power generation is expected to attract continuous demand as a clean renewable energy contributing toward the realization of a low-carbon society, the statement read. The Japanese companies will have a particular focus on strengthening their competitiveness in pumped storage power generation, particularly in a field where high speeds, large capacities and high heads are required.
Outline of new company (as currently planned):
1. Operation commencement: October 1, 2011
2. Shareholders: 50%: Hitachi, Ltd; 50%: two Mitsubishi companies(Mitsubishi Electric Corporation and Mitsubishi Heavy Industries, Ltd.), with each company's shareholding ratio to be decided later.
3. Scope of business:
a. Marketing, installation and after-sale servicing of hydroelectric power generation systems, for electric utilities both in Japan and overseas.
b. Engineering relating to hydroelectric power generation systems
c. Development and design of main components for hydroelectric power generation systems, including water turbines, water turbine generators and control systems
The company name, representative, head office location, capitalization, etc. will be decided at a later date, the statement said.