Turbo charging ahead

(MHI) is to boost its production of turbochargers in Europe in the face of increased demand.

Peugeot, for example, has requested an additional 200,000 units of MHI's small-size turbochargers for its 1.6 litre diesel engines, besides the 500,000 units per year that MHI is already supplying to the automaker.

Hence MHI will increase its European production capacity by more than 40%, from the current 700,000 units to 1 million units per year by 2006.

To do so, it plans to invest roughly 1.1 billion yen into MHI Equipment Europe (MEE), its wholly owned production subsidiary in Almere in the Netherlands.

The investment will involve the establishment of two new production lines: a processing line for turbine rotors, major components of small turbochargers; and a cartridge assembly line for assembling parts such as turbine rotors, compressor wheels and bearing housings.

Once complete, MHI's total worldwide turbocharger production capacity will reach 3 million units a year.

MHI aims to become the second-largest turbocharger manufacturer in the world by the end of 2008.