Making valves in China

(MHI) has formed a joint venture company with Shenyang Aerospace Xinguang Group, a Chinese automobile engine manufacturer, to produce engine valves in the

The new JV, called Shenyang Aerospace Xinguang Mitsubishi Heavy Industries Engine Valves, will have a production capacity of 10 million valves the first year and 30 million units by 2008.

The company will be capitalized at 82 million Chinese Yuan (approximately 1.1 billion yen). Shenyang Aerospace Xinguang Group will own a 35% stake and MHI and Mitsubishi Heavy Industries, (Hong Kong) (MHIH) will each hold 32.5% stakes.

Construction will get under way this month and the factory will be completed in October. Three hundred employees are expected to be working at the new plant within two years.