Mitsubishi Power to Restructure the Domestic Locations for Its Boiler Business -- Kure Works to Strengthen Competitiveness in Boiler Service and Air Quality Control Systems Businesses --

･ Boiler manufacturing function to be consolidated at Nagasaki Works

YOKOHAMA, JAPAN (February 4, 2021) - Mitsubishi Power, a subsidiary of Mitsubishi Heavy Industries (MHI) Group, has decided to restructure the domestic locations for its boiler business. Since the predecessor of Mitsubishi Power, MHPS, was established in 2014, the boiler business has continued to operate two plants in Japan, Nagasaki Works and Kure Works. The industry has experienced sweeping changes in the market demand for coal-fired power generation that has led to a sharp contraction in new plant construction. Addressing the market situation, Mitsubishi Power will consolidate the boiler manufacturing function of new construction and after-sales service, as well as the new facility design and the construction function, at the Nagasaki Works. At the Kure Works, management resources will be shifted to the boiler design and engineering services business and Air Quality Control System (AQCS) business, with the objective of strengthening competitiveness in both businesses. The restructuring is scheduled for completion at the end of fiscal 2022.

The business environment for coal-fired power generation is changing radically amid efforts to achieve carbon neutrality by 2050, and a sharp contraction in demand for new coal-fired plants is projected globally and in Japan. At the same time, there is a greater need to improve the environmental performance and generating efficiency of existing coal-fired plants, while addressing the need for decarbonization using technologies such as biomass and ammonia co-firing. Mitsubishi Power is responding with selection and concentration of management resources, and has adopted the current restructuring plan to pivot to expanding services and environmental solutions, enabling us to achieve carbon neutrality while supporting stable power supplies.

Kure Works was established in 1959 as a boiler manufacturing plant, supplying countries around the world with products and services for energy and environmental conservation solutions. This included thermal power generation boilers and AQCS (flue gas desulfurization systems and selective catalyst reduction systems). The plant will continue to actively pursue development of new technologies, such as integrated coal gasification combined cycle (IGCC), low-grade coal combustion, and CO₂ capture technologies. Going forward, Kure Works will aim to expand its service business while positively impacting the environment by contributing to decarbonization of existing boilers, and promoting the AQCS business, which is expected to see rising demand amid tightening of environmental regulations worldwide, will provide products that help lower environmental loads and achieve carbon neutrality, and strengthen the solutions business.

Mitsubishi Power will continue to work in close cooperation with the areas in which its plants are located, as well as all stakeholders, to build a production structure in keeping with the business environment and customer needs, and as a member of MHI Group, work to advance the energy transition and realize a sustainable society.