Mitsubishi Heavy Industries Secures $150 Billion of Contracts in Middle East

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Researched by Industrial Info Resources (Sugar Land, Texas)--Mitsubishi Heavy Industries Middle East (Dubai, United Arab Emirates), a subsidiary of Japanese conglomerate Mitsubishi Heavy Industries Limited (TYO:7011) (MHI) (Tokyo, Japan), has been awarded regional contracts worth more than $150 billion. The period for which the contracts will be implemented and the project details have not been disclosed. Koji Okamoto, General Manager of the MHI office in the Dubai Airport Free Zone, said that Japanese companies should consider setting up permanent offices in the Middle East and increase the regional count of their engineers to effectively take advantage of the huge business potential of the region.

MHI is involved with projects in the sectors of aerospace engineering, desalination machinery, machinery manufacture, shipbuilding, and transport systems. Among MHI's major projects in the region are the construction of integrated water and power production plants at three sites in Saudi Arabia, a power system production project at Ras Laffan in Qatar, and the Sohar Fertilizer Complex in Oman. MHI is also involved in building the airport people mover at the Dubai International Airport, as well as the Red and Green Lines of the Dubai Metro.

The two-phase Dubai Metro project was planned and is being implemented by a consortium of five companies led by MHI. The other members of the consortium are Mitsubishi Corporation (OTC:MSBHY) (Tokyo), Kajima Corporation (TYO:1812) (Tokyo), Obayashi Corporation (TYO:1802) (Tokyo), and Yapi Merkezi (Istanbul, Turkey). While the 52.1-kilometer Red Line is partly operational, the 23.9-kilometer Green Line is scheduled to be operational in late 2010. The people-mover project at the Dubai International Airport was built by MHI in collaboration with Mitsubishi Corporation.

MHI constructed the Sohar Fertilizer Complex in collaboration with Sojitz Corporation (TYO:2768) (Tokyo) at the Sohar Industrial Area in Oman. The $500 million contract, signed in 2004, marked MHI's first project in Oman. The 2,000-ton-per-day ammonia plant began production in 2008.

MHI is supplying eight gas turbines and four steam turbines to the Ras Laffan C independent water and power project that is currently being constructed at the Ras Laffan Industrial City in Qatar. The project includes a 2,730-megawatt (MW) natural-gas-fired combined-cycle gas turbine power generation plant and a 63 million-gallon-per-day desalination plant. The project is being implemented by the Ras Girtas Power Company, a consortium of six companies, and is scheduled to be operational in April 2011.

MHI developed a power plant and a desalination plant in Rabigh, Saudi Arabia, for Rabigh Arabian Water & Electricity Company, a joint venture formed by four companies. The end user of power, steam and water from the project is a petrochemical complex managed by Rabigh Refining and Petrochemical Company (Rabigh).

MHI's office at the Dubai Airport Free Zone was set up in 2006. The main functions of the office include collection of information about the Middle East, networking with existing and potential clients in the region, supporting ongoing and existing projects, establishing sales agents, and engagement in service ventures. The strategic location of the office enables MHI to take quick action when required for various projects in the region.

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