Mitsubishi Electric Corporation announced that on 23 February 2011, its wholly-owned subsidiaries Mitsubishi Electric Automation (China) Limited and Mitsubishi Electric (China) Co., Ltd. entered into a joint venture agreement with Shanghai Electric Environmental Protection Investment Co., Ltd., a wholly-owned subsidiary of Shanghai Electric Group Company Limited.
The primary objective of the joint venture (JV), based in Shanghai, is environmental protection through the development, design, integration and production of industrial energy saving systems. The JV is tentatively named Shanghai Electric Ryoden Energy Saving and Control Technology Co., Ltd., subject to approval by the industrial and commercial registration authorities.
Pursuant to the terms of the JV agreement, the registered capital will amount to RMB 34 million. Mitsubishi Electric Automation (China) Limited and Mitsubishi Electric (China) Co., Ltd. will contribute a total of RMB 16.66 million in cash for 49% equity interest.
The government of China is promoting environmental protection and energy saving initiatives, and the energy saving market is expected to expand as a result of China's rapid economic development. Mitsubishi Electric Corporation's decision to collaborate with Shanghai Electric Group Company Limited, its Chinese partner in the elevator business, is designed to reinforce its operations in the industrial energy saving business in China.