Mitsubishi Heavy Industries (MHI) has signed an agreement with United Technologies (UTC) to purchase Pratt & Whitney Power Systems (PWPS).
The company is a small and medium-size gas turbine business unit of Pratt & Whitney (P&W).
MHI and UTC, P&W's parent company, signed the agreement in the week ended 13 December.
PWPS is involved in the engineering, assembly and sales of aeroderivative gas turbines. It also provides services of gas turbines and engineering, procurement and construction of related power generation systems. The company has approximately 430 employees.
Italy's Turboden, a manufacturer of turbines and an affiliate company of PWPS, will also become an MHI affiliate once the acquisition is completed.
MHI will diversify its power generation product portfolio with the acquisition of PWPS. The latter is developing a new turbine that is expected to boost its market share significantly, says MHI.
For many years, MHI and P&W have partnered on aeroengine production, including the recent joint development of the jet engine for the Mitsubishi Regional Jet. After the acquisition, MHI will maintain its partnership with PWPS in the supply of engine parts for gas turbines and the development of machines as it targets an expansion in the aeroderivative gas turbine business.