(EnergyAsia, October 8 2010, Friday) — Japan’s Mitsubishi Heavy Industries Ltd (MHI) said it has established MHI Industrial Engineering and Services Private Ltd (MIES) in Singapore to handle the company’s machinery and steel structures business.

MHI said its subsidiary will function as a marketing and service base for environmental and chemical plant projects in the Southeast Asia and Middle East regions. MIES will also execute part of the engineering, procurement and construction (EPC) projects including procurement activities. Its business scope will later be broadened beyond servicing environmental and chemical plants to regional operations in machinery and steel structures.

According to MHI, MIES will undertake engineering projects, which include oil and gas production facilities, flue-gas desulphurisation systems and carbon dioxide (CO2) recovery systems, in addition to its primary focus on chemical plant projects.

Mitsubishi Heavy Industries Singapore Private Ltd. (MHISP), a wholly owned subsidiary of MHI, will hold 100% of MIES’s capital of S$2.4 million. (US$1=S$1.3).

MIES will start off with 11 employees, with plans for expansion to about 50 within four years.

Takato Nishizawa, deputy general manager of MHI’s machinery and steel structures headquarters, will concurrently serve as managing director of MIES.

The markets for environmental and chemical plants are rapidly expanding in the emerging countries in line with economic growth and population increases. Competition in these markets is intensifying from new engineering players from South Korea and China, and established ones in Japan, Europe and the US.

With its new regional business base in Asia, joining bases in the US and Europe, MHI said it will now focus on strengthening its business activities in environmental and chemical plants.