MHI to Boost Small Turbo Production Capacity, Aiming at No. 2 Position; Preparing for 3.6 Million Unit/Year Output by September 2007

Tokyo, Japan, Sept 14, 2006 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. is taking steps to boost its production capacity in small-size turbochargers by more than 20%, from the current 3 million units p.a. (per annum) to 3.6 million p.a. by the end of the first half of fiscal year (FY) 2007 (April 1, 2007 through March 31, 2008). The company aims to respond to steadily expanding orders from European and Asian automakers for small turbochargers that can provide higher combustion efficiency in line with today's tightened emission control standards. To increase its production capacity MHI will invest some 3.5 billion yen in FY2006 and ramp up production from FY2007.

The investment will be directed into a production line dedicated to small-size turbochargers for passenger cars - specifically, TD025 turbochargers for diesel engines with less than 2,000 cc displacement and the TD04 model for diesels with displacements between 2,000 cc and 3,000 cc. Demand for turbochargers of this class is increasing in the European and Asian markets in tandem with strengthening of environmental regulations. In line with this trend, MHI's small turbocharger sales soared from 2.5 million units in FY2005 to a projected 3 million this fiscal year, with forecasts anticipating further increases to 3.6 million in FY2007 and 4 million in the near future.

MHI's investment will target expanded production capacity at the main plant of the company's General Machinery & Special Vehicle Headquarters in Sagamihara, Kanagawa prefecture. The investment will focus on parts processing lines for turbine rotors and compressor wheels, the core components of turbochargers, and their assembly line. Through concentrated investment into this main domestic plant, the company aims for further improvement in production efficiency and full capacity utilization.

Specifically, production capacity will be increased through faster transfer of parts within lines and speedier parts processing time, as well as reduction of facility idle time through automation of process changes when there are changes in the models being manufactured. In addition, through optimal adoption of rationalization technologies such as more advanced measurement automation during the inspection process, MHI will proceed in establishing production/assembly lines capable of stable mass-production of high-quality products.

With implementation of the foregoing initiatives and further aggressive investment, MHI seeks to firmly meet customer needs with respect to both product quality and delivery speed. In doing so, it targets further share expansion in the small-size turbocharger market, aiming to become the second-largest turbocharger manufacturer in the world.

About Mitsubishi Heavy Industries, Ltd.

Mitsubishi Heavy Industries, Ltd. , headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 2,792 billion yen in fiscal 2005 (year ended March 31, 2006). MHI's diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems. For more information, please visit the MHI website at http://www.mhi.co.jp