Siemens, Mitsubishi in metals alliance
07 May 2014
German engineering giant Siemens AG yesterday entered into a joint venture with Japan's Mitsubishi Heavy Industries (MHI) to provide plants, products and services for the iron, steel and aluminum industries.
Both companies will contribute their metallurgical industry activities to the JV, and Siemens will hold a 49-per cent stake, with MHI holding the majority 51-per cent stake in the venture, expected to start operations in January 2015.
The new joint venture will integrate Mitsubishi-Hitachi Metals Machinery – an MHI consolidated group company with equity participation by Hitachi, Ltd. and IHI Corporation, and will be headquartered in the UK.
The JV with approximately 9,000 employees, will focus fully on business with iron, steel and aluminum-producing industry.
The portfolios of the two partners will complement one another, with the technology strengths of Siemens Metals Technologies lie in particular in iron and steel production, casting, automation, environmental technologies and lifecycle services, while MHI's technology competence is primarily focused on hot and cold rolling, processing as well as production expertise.
By combining both portfolios, both companies said that the JV can offer its customers the entire value chain in iron, steel and aluminum production, from technologies for processing raw materials to surface finishing at the end of the production process, as well as the related lifecycle service competencies.
Regionally, the steel market has strongly shifted to Asia. Over 50 per cent of the world's steel production now takes place in China, with growing competition also through local technology providers.
Drawing on the centers of competence of Siemens Metals Technologies in Central Europe and those of MHI in Asia, the new joint venture has a very solid regional set-up," Siemens said in a statement.
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.
By combining both portfolios, the joint venture can offer its customers the entire value chain in iron, steel and aluminum production, from technologies for processing raw materials to surface finishing at the end of the production process, as well as the related lifecycle service competencies.
