FOR IMMEDIATE RELEASE No. 3019

Mitsubishi Electric Establishes New Company in Turkey for Room Air Conditioner Development and Manufacture

Expanding air-conditioning and refrigeration-systems business in Europe

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TOKYO, April 13, 2016 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it established a new company for the development and manufacture of room air conditioners in Istanbul, Turkey. The company, called Mitsubishi Electric Turkey Klima Sistemleri Üretim Anonim Şirketi, is scheduled to begin production in January 2018.

The annual demand for room air conditioners in Turkey is about one million and further growth is expected in line with an increasing population. Rising demand is also forecast for neighboring Balkan countries.

Based on this robust demand and a favorable business environment, including a skilled labor pool and stable components procurement, Mitsubishi Electric decided to establish a development and manufacturing base in Turkey. The new company will play a key role in Mitsubishi Electric's global strategy for its air conditioning and refrigeration-systems business in the European market, which calls for accelerated localization to ensure a flexible supply chain capable of responding to fluctuating demands. The strategy also promotes product development that meets specific local needs, preferences and environmental requirements in Europe while continuously consolidating manufacturing and supply capability.

New Company Outline
Name Mitsubishi Electric Turkey Klima Sistemleri Üretim Anonim Şirketi
English:
Mitsubishi Electric Air Conditioning Systems Manufacturing Turkey Joint Stock Company
Location Headquarters: Istanbul, Turkey
Manufacturing site: Manisa, Turkey
Ownership Mitsubishi Electric Corporation: 100%
Capital 80.6 million TRY (approximately 3,200 million JPY)
Established April 4, 2016
Site area Approx. 60,000 square meters
Floor area Approx. 40,000 square meters
Production capacity 500,000 units annually
Start of operations January 2018 (subject to change)
Capital expenditure Approx. 7,000 million JPY
Employees Approx. 400 by FY2020
Business Development and manufacture of room air conditioners

Note that the releases are accurate at the time of publication but may be subject to change without notice.