Mitsubishi and Suhail Bahwan Group establish Indian operations

Japan’s Mitsubishi Heavy Industries, Ltd. (MHI) and Oman’s Suhail Bahwan Group (SBG) have jointly established MHI Engineering and Industrial Projects India Private Limited (MEIP), in India effective September 2, 2011. The JV will undertake business development, design, engineering, procurement, construction management, after-sale services and other functions for various industrial and infrastructure projects handled by MHI’s Machinery & Steel Infrastructure Systems division. The JV will also be responsible for the construction of fertilizer plants, methanol plants, petrochemical plants and oil & gas production plants. Initially MEIP will focus on businesses related to chemical & environmental plants (including carbon dioxide recovery systems and flue-gas desulfurization plants) and transportation systems. Later MEIP plans to expand its business coverage to include the MENA region.

MEIP has been established with about US$ 20 million. MHI holds majority stake with 51% and SBG owns 49%. MEIP head office is located in Gurgaon, Haryana State, near Delhi.

The joint venture leverages the streangths of MHI and SBG by utilizing MHI’s technological capabilities in a wide range of fields and SBG’s know-how and quality management. Since adopting a course of economic deregulation, India’s economy has expanded very rapidly, and is expected to achieve about 8% growth in 2011. Along with this vigorous economic growth, infrastructure-related investment has been increasing robustly. In view of the rising trend in infrastructure investment and soaring demand from various related industries, MHI and SBG decided to establish MEIP.

MHI statement mentions that the company in collaboration with SBG, will fully support the new joint venture company’s business development activities in both technological and sales and marketing aspects. The companies are not new to collaborations. MHI is presently constructing the largest green field ammonia/urea complex in the world for a company owned 51% by SBG and 49% by Sonatrach in Algeria.