Mitsubishi Heavy Industries (MHI), IHI Corporation and the Development Bank of Japan (DBJ) have agreed on the level of investment they are each making to launch a new aero engine company.
MHI Aero Engines has been split from MHI and will be launched as a new company on October 1.
The firm will start trading with capital of ¥6bn ($57.5m), with MHI owning 89 per cent of the company, IHI one per cent and DBJ 10 per cent.
In creating the new firm MHI aims to improve the operation’s financial base and boost productivity by forming large-scale cooperative facilities.
Alongside offering engineering and manufacturing services, MHI Aero Engines will launch with a subsidiary providing MRO services – MHI Aero Engine Service