HomeWorld RegionsAfricaJapanese giants face-off over coal power projects

Japanese giants face-off over coal power projects

Hitachi and Mitsubishi Heavy Industries continue to be in conflict over costs associated with works intended for the Medupi and Kusile coal-fired power plants in South Africa.

Hitachi won a contract to build 12 boilers for the Eskom-owned plants in 2007. It later transferred the contract to a joint venture with MHI.
Medupi coal-fired power plant
The venture, Mitsubishi Hitachi Power Systems Ltd, is majority owned by MHI and was formed in February 2014 by combining the two companies’ thermal power generation businesses. But Hitachi and MHI fell out after being unable to agree on whether certain costs were incurred before or after the creation of the venture, a regulatory filing showed.

Hitachi announced midweek that is has received a request from Mitsubishi Heavy Industries for $6.65bn to cover costs from their joint venture, which the former has rejected as lacking legal ground.

Reuters reports that the amount is almost double an initial request MHI made at the beginning of a 10-month-old dispute over which of the Japanese firms should bear costs from the power plant project.