MHI Establishes GX Solutions Business Domain to Promote Energy Transition Business Growth Strategy

- Integration of energy transition-related divisions and functions to further strengthen the MHI Group's energy transition business
- New business domain to make use of synergies to accelerate decarbonization efforts

TOKYO, Mar 14, 2024 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI), on April 1, will establish "GX (Green Transformation) Solutions" as a new business domain to promote the energy transition business that MHI Group is pursuing as a growth strategy. By reorganizing the energy transition-related business, which currently spans multiple business divisions, and establishing a structure with enhanced project management and engineering functions, MHI Group will be able to provide one-stop solution for customer needs, and effectively utilize shared resources to enhance responsiveness.

In its 2021 Medium-Term Business Plan announced in October 2020, MHI Group designated "Energy Transition" and "Smart Infrastructure" as dual engines for growth and is currently pursuing energy transition measures with the aim of significantly increasing its corporate value by 2030. In recent years, driven by decarbonization policies in countries around the world, such as the U.S. Inflation Reduction Act (IRA) which puts in place a system of tax incentives and subsidies for projects relating to energy security and addressing climate change, demand has risen for solutions to support the production and use of hydrogen and ammonia, as well as technologies for CO2 capture and utilization.

Accordingly, the need for integrated proposal and solution capabilities is more acute than ever. In response to these changes in the external business environment, in April 2023, Mitsubishi Heavy Industries Engineering, Ltd. (MHIENG), which provides world-class technologies for businesses handing CO2 capture system and related equipment and has a wealth of experience with ammonia plants and transportation systems, was integrated into MHI to establish the Engineering Solutions business domain.

Now, by integrating its energy transition-related businesses, which currently span the Energy Systems business domain (hydrogen and ammonia business development), the Engineering Solutions business domain (CO2 capture system, ammonia plants, transportation systems), and the Growth Strategy Office (hydrogen, ammonia, and CO2 value chains), MHI Group aims to further strengthen its energy transition-related business.

Overview of Organizational Restructuring

1. A part of the Energy Systems business domain's Energy Transition Department, the Engineering Solutions business domain, and a part of the Growth Strategy Office will be integrated to create the GX Solutions business domain under the direct control of the CEO, which will conduct agile business operations.
2. As a result of this restructuring, the Engineering Solutions business domain will be abolished.Tags: GX,Green Transformation,energy transition,decarbonization

About MHI Group

Mitsubishi Heavy Industries (MHI) Group is one of the world's leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.

Source: Mitsubishi Heavy Industries, Ltd.

Copyright 2024 JCN Newswire . All rights reserved.