JAPAN: Mitsubishi Heavy Industries (MHI) has signed a joint venture agreement with Chinese chiller manufacturer Dalian Refrigeration Co (DRC).
The operation of the JV will include production, marketing and servicing of centrifugal chillers. The deal gives MHI a local production base in China, with one of China's largest chiller manufacturers in the world's largest market for centrifugal chillers.

The new company, to be named MHI Bingshan Refrigeration (Dalian) Co Ltd, will be capitalised at 80m yuan (approximately £8.4m), with MHI owning a 55% equity share and DRC holding the remaining 45%.

The JV will be licensed to manufacture MHI's medium- and large-size centrifugal chillers in China, for which a new 12,000m2 factory will be newly constructed within DRC's current plant site in Dalian. The JV plans to launch production in April 2014 and looks to establish a structure to produce 500 units per year in the near future.

Initially Mitsubishi Heavy Industries Air-conditioners (Shanghai) Co Ltd, MHI's Chinese subsidiary, will initially market and service the chillers, utilising its established local sales network. MHI also plans to market the centrifugal chillers manufactured by the JV outside China, mainly in Asia and the Middle East, through its own sales network, with the intention of developing the JV in Dalian into a global production base.