Offset Printing

MHI Streamlines Printing Machinery Sales/Service Network in Europe

Monday 14. September 2009 - Distributor Network to Be Expanded

Mitsubishi Heavy Industries, Ltd. (MHI) has decided to undertake a thorough revamping of its printing machinery sales and service structures in Europe. Printing machinery sales/service activities until now overseen by two dedicated local subsidiaries – MLP UK Ltd. (MLP-UK) and MLP Europe S.A. (MLP-E) in France – will henceforth be managed by Mitsubishi Heavy Industries Europe, Ltd. (MHIE) as part of its business operations. At the same time, MHIE will broaden the distributorship network throughout Europe. MHI, acting in response to current market conditions, opted to establish a slimmer, more solid business structure in order to secure profits firmly and manage its network dynamically. The new business structure will go into operation this month. In tandem with this initiative, MLP-UK and MLP-E will be liquidated.

Until now, MHI’s printing machinery business in Europe has been carried out by MLP-UK undertaking direct sales to UK customers and MLP-E conducting sales in France and other countries on the Continent through either direct sales or a distributor network. In view of the recent economic crisis and its impact on demand through the foreseeable future, MHI decided to abolish direct sales in the region as a way to reduce fixed costs and minimize business risk tied to economic fluctuations, and in its place to adopt a structure of sales and service activities performed through local distributors. To manage the distributorships, a new printing machinery division is being established within MHIE.

The new division, which will serve as the new headquarters of MHI’s printing business in Europe, is located in Leeds, a major city in West Yorkshire. Initially, the new division will focus on the promotion and expansion of the distributorship system. It will also aim to attract demand by introducing new sheet-fed offset press models. Plans also call for enhancement of operational efficiency by integrating the showroom and European parts center, and increased sales of parts as a major and stable source of revenue, to be achieved by increasing the number of items that can be delivered immediately on demand.

The fiercely competitive European market, despite its current difficulties, is still a major market accounting for near one-fourth of global sales. With the launch of its new structure, MHI will be solidly positioned to pursue more dynamic business developments and establish a solid business base within this vital market.