MHI to License MET Turbocharger Production and Marketing To STX Metal of Korea,
Forming Structure of Close Collaboration

Tokyo, November 29, 2011 - Mitsubishi Heavy Industries, Ltd. (MHI) and STX Metal Co., Ltd., a marine diesel engine manufacturer in Korea, have signed an agreement under which MHI will license production and marketing of its MET Turbocharger*, a supercharger for marine diesel engines, to the Korean firm. By establishing a collaborative relationship with STX Metal, MHI aims for further market penetration of the MET Turbocharger in Korea, the world leader in marine diesel engine production. STX Metal is expected to complete production of the first unit of the MET Turbocharger in 2012.

STX Metal is a core company of Korea's STX Group, one of that country's leading business conglomerates. It supplies turbochargers and engine parts to STX Engine Co., Ltd. and STX Heavy Industries Co., Ltd., and employs a staff of about 600. In 2010 the company’s revenue totaled 955 billion Korean won (approx. 66 billion yen / US$850 million). The STX Group ranks fourth in the world in terms of production volume of marine diesel engines.

The agreement with STX Metal represents the third licensing of MET Turbocharger technology to Korea. Previously MHI licensed the technology to Hyundai Heavy Industries Co., Ltd. and Doosan Engine Co., Ltd., respectively the world's largest and second-largest diesel engine manufacturers. With licensing by MHI to the three companies cited, the MET Turbocharger now becomes the world’s frist turbocharger brand licensed to all Korean marine diesel engine manufacturers.

Going forward MHI will continue its quest to capture more than 50% of the world market share by establishing global production structure of MET Turbocharger aggressively. The latest licensing agreement will further accelerate that initiative.

Note:
A turbocharger is a device to supercharge air necessary for combustion in the engine. MHI entered the market with a water-cooled turbocharger in the 1950s. In 1965, the company developed a non-cooled turbocharger, subsequently adopting the brand name of "MET Turbocharger." Since then MHI has introduced various high-efficiency, high-performance turbochargers to the market and expanded the MET Turbocharger series portfolio. Owing to its high-efficiency, simple and easy-to-maintain structure and outstanding reliability, the MET Turbocharger has established a solid track record and is highly evaluated by its users.

Mitsubishi Heavy Industries, Ltd. press release