The Southwood Group is monitoring Mitsubishi Heavy Industries Ltd., as Japanese manufacturing goliath unveils plans to improve supply line quality.
Mitsubishi’s Aircraft manufacturing division has announced plans to open a quality assurance centre in Europe to improve supply chain interface from its many suppliers involved in its passenger jet project. The quality assurance centre will be only the second such venture for Mitsubishi outside of Japan. The company will follow on from the successful implementation of this type of centre, which they opened in the American state of Illinois in June.
“It seems for a lot of people outside of Japan that they only associate Mitsubishi with cars and trucks. The reality is that the Japanese company is far more like G.E Westinghouse than a traditional American style automaker. They are involved in just about every facet of manufacturing and industry. Although this is their first passenger jet Mitsubishi’s aircraft division is one of the company’s oldest and most successful units,” said Senior Vice President of Mergers and Acquisitions James Morgan at The Southwood Group.
The moves are designed to bolster supply of critical components for the company’s first ever commercial jet, an airframe designed to be utilized on smaller regional routes and when completed is expected to compete for orders with older more recognized firms in the aviation business such as Bombardier, Fokker and EBDA. The Mitsubishi aircraft has already seen orders for delivery from American regional providers Sky West and Trans States.
Despite production delays setting back delivery dates Mitsubishi has orders totalling 325 airframes with their sales value in the U.S market already at $6.3 billion, with an additional follow on order worth $2.1 billion already optioned on 50 aircraft. The year to date has been impressive for Mitsubishi with the company delivering a ROI to date of 78% and its share value continuing to trend higher.
“With Mitsubishi you really have to look beyond the car maker’s image to see the big picture, the key component to its performance and stability is not just size, but rather its diversity across so many sectors; this enables the company to weather industry specific down turns far better than its opposition and other large corporations. In regards to the company’s passenger jet program, they have the expertise to roll out such a project in large quantities and their pre orders show the confidence the industry places within them. We are looking at how to best place our clients positions with the mind-set of fulfilling the needs to securing a well-balanced and diversified portfolio,” added Senior Vice President of Mergers and Acquisitions James Morgan at The Southwood Group.
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