Mitsubishi Electric has declared that Mitsubishi Electric Automation and Mitsubishi Electric-China, fully-owned subsidiaries of the company, made a joint venture contract with Shanghai Electric Group Company’s Shanghai Electric Environmental Protection Investment.
The major objective of the agreement is environmental conservation by designing, developing, integrating and manufacturing industrial systems for saving energy. The RMB 34 million worth joint venture is provisionally named as Shanghai Electric Ryoden Energy Saving and Control Technology and is awaiting for authorization from industrial and commercial registration officials.
As per the terms of the Joint Venture contract, Mitsubishi Electric Automation and Mitsubishi Electric will offer RMB 16.66 million in cash for an equity interest of 49%.
The Chinese government is extending its support to the various projects related to energy saving and environmental conservation. The energy saving business in China is likely to flourish due to the rapid economic growth of the country. The decision of Mitsubishi Electric to partner with Shanghai Electric Group will enable the company to reestablish its domination in the Chinese energy saving market.