Mitsubishi Heavy plans Savannah, Ga., rotor plant

Dec. 14, 2011, 4:54 a.m. EST

By Mari Iwata

TOKYO (MarketWatch) -- Mitsubishi Heavy Industries Ltd. said Wednesday it will build a plant to produce rotors, a core component of gas turbines, at its facility near Savannah, Georgia, to take advantage of rising demand for gas-fired power plants in the U.S. and to dodge the impact of the strong yen. The company will begin construction of the new facility in the second quarter of 2012.

With the completion of the rotor production facility, slated for the third quarter of 2013, Mitsubishi Heavy will able to produce 12 units a year of gas turbine combined-cycle power generation systems at the Savannah plant without importing any major parts from Japan, a company spokesman said.

Mitsubishi Heavy expects rising demand for gas turbine combined-cycle power generation systems in the U.S. as a large number of coal-fired power plants are reaching the end of their operational lives, while advancements in extraction technology have lowered prices of natural gas to levels that can compete with coal.

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A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga