\n\tSiemens AG, Germany, and Mitsubishi Heavy Industries (MHI), Japan, have agreed to form a joint venture to provide plants, products, and services for the global iron, steel, and aluminum industries. Siemens technology strengths are in iron and steel production, casting, automation, environmental technologies, and lifecycle services. MHI’s technology competence is primarily focused on hot and cold rolling and processing, as well as production expertise.<\/p>\n
\n\tBy 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.<\/p>\n
\n\tAccording to the agreement, MHI will hold a 51% and Siemens a 49% stake in the joint venture. Subject to approval of the relevant authorities, the joint venture will start operations in January 2015.<\/p>\n
\n\tThe new joint venture will integrate Mitsubishi-Hitachi Metals Machinery, Inc. (MH) \u2013 an MHI consolidated group company with equity participation by Hitachi, Ltd. and IHI Corporation. Siemens and MHI ideally complement one another with regard to their product portfolios, production know-how and geographical spread. The new joint venture with approximately 9000 employees will focus fully on business with iron, steel and aluminum-producing industry. The bundling of competencies will result in a powerful joint venture that is better able to compensate for market fluctuations.<\/p>\n
\n\tThe company’s headquarters will be located in the United Kingdom. The joint venture includes supply agreements for Siemens’ Industry Automation and Drive Technologies Divisions.<\/p>\n
\n\tRegionally, the steel market has strongly shifted to Asia. Over 50% 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.<\/p>\n