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Shanghai MHI Engine, JV with Shanghai Diesel Engine, begins mass production

23 December 2013

Shanghai MHI Engine Co., Ltd., a manufacturer and marketer of diesel engines jointly established by Mitsubishi Heavy Industries, Ltd. (MHI) and Shanghai Diesel Engine Co., Ltd. (SDEC)—a group company of SAIC Motor—has begun mass-volume production. The model launched on full scale is a diesel engine with 1,000-kilowatt (kW) class output for use in power generation systems. Plans incrementally expand a product lineup into eight models toward a cumulative production target of 1,500 units per year.

The model first to go into mass production at Shanghai MHI Engine is the S12R-PTA-C, a diesel engine featuring an output of 1,190 kW at 1,500 revolutions per minute (rpm) for use in power generation systems. The S12R-PTA-C will be finished into power generation systems primarily by local generation set makers, to meet industrial and other needs in the Chinese market.

Shanghai MHI Engine was established in February of this year as a fifty-fifty joint venture (JV) between MHI and SDEC. Operations got under way in March at a plant on SDEC’s premises.

The JV was created to manufacture and sell diesel engines with outputs in the 500-1600 kW range under license from MHI, leveraging MHI’s advanced technologies cultivated through production of industrial-use diesel engines and SDEC’s networks in the Chinese market. Annual sales are initially targeted at near ¥10 billion (US$96 million), to increase to ¥20 billion (US$192 million) within several years.

SDEC, a group company of SAIC Motor, China’s largest automaker, produces engines for use in automobile, construction equipment, power generation systems and marine vessels, and holds a major share in its domestic market of high-speed diesel engines with outputs of 100-500 kW.

In China, as the diesel engine market continues to mark robust growth, demand is also expected to expand sharply for distributed power supplies employing engines fueled by natural gas. Shanghai MHI Engine will pursue both of these promising markets, with full backup support from both MHI and SDEC.

December 23, 2013 in Brief | Permalink | Comments (0) | TrackBack (0)

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