Mitsubishi thriving, growing on megasite

As the Savannah area is buzzing about the potential announcement of a new mega-development just up Interstate 16 in Bryan County, the occupant of Chatham County's storied Pooler megasite continues to grow and thrive where it's planted.

April has been an especially busy month for Mitsubishi Hitachi Power Systems Americas Inc., whose Savannah Machinery Works is located on 120 acres at the intersection of I-16 and Interstate 95, as it puts the finishing touches on its powerhouse merger between the thermal power generation systems of Mitsubishi Heavy Industries Ltd. and Hitachi Ltd.

The joint venture agreement - giving Mitsubishi a 65-percent equity stake and Hitachi the remaining 35 - was signed last year, expanding each company's presence throughout the Americas. Earlier this month, the two began consolidating their respective assets, combining more than 150 years of technological innovation and leadership.

At Savannah Machinery works, Mitsubishi Hitachi manufactures and services massive, fuel-efficient gas and steam turbines. The plant opened in October 2010 and houses more than 440,000 square feet of high technology manufacturing space and equipment.

"We're excited about the consolidation of companies and operations," said Dave Walsh, president and CEO of Mitsubishi Hitachi Power Systems Americas. "Through the combined resources created with this integration, we can expand with a full scope and a broader portfolio of solutions to offer our customers."

Hitachi has an excellent line of smaller gas turbines, Walsh said.

"So, rather than duplicate services, the merger gives us a broader mix of units to build, sell and service."

For now, the Pooler plant will continue to build Mitsubishi's large turbines as it moves toward full capacity by 2018, Walsh said.

"When you gear up to build these huge machines, it takes a while to reach capacity," he said, adding that Savannah Machinery Works, with approximately 320 employees, is right on track.

"We fully expect to grow our work force in the coming months," he said. "Our fiscal year ended March 31, and our order book continues to grow into the new year."

Among the major contract awards the Savannah plant has on the books is an order for two new natural gas-powered 501J gas turbines for a new power plant for Enmax Capital Power in Edmonton, Canada, and four new gas turbines for Duke Energy in Florida.

"And we're about halfway through our contract with the Grand River Dam Authority in Oklahoma to provide a M501J gas turbine, an SRT-50 steam turbine and associated electric generators as part of a new unit at the authority's existing power plant," Walsh said.

That's busy, considering Mitsubishi Hitachi's J Series gas turbine is the largest and most efficient gas turbine in the world, carrying a price tag in the tens of millions.

The Savannah Machinery Works began working on the $77.8 million Grand River Dam order nearly a year ago.

'In the right place'

As America's energy industry continues to grow, Walsh sees the Savannah plant in "exactly the right place" to grow along with it.

"The equipment we make makes electricity," he said. "And while the demand for electricity is flat - primarily because of advances in efficiency - more and more coal-fired plants are being shuttered.

"Because of the surging natural gas industry in this country, many of these plants are being shifted from coal-fired to natural gas-powered. And what does Savannah Machinery Works make?

"Gas turbines," he said, answering his own question.

"Right now, natural gas is the fuel of choice. Its cost is stable and looks to stay that way into the foreseeable future," he said, adding that abundant natural gas stores combined with the enormous environmental efficiency of the large turbines, makes for a bright future at Mitsubishi Hitachi and Savannah Machinery Works.

Walsh also said he couldn't be happier with the location the company chose for this plant.

"We have a great port and a statewide economic development structure that - from the governor on down - totally understands the needs of business," he said.

"We have a well-trained and well-supported workforce, with about 35 percent of our employees coming from the military communities of Fort Stewart and Hunter Army Airfield. And we have QuickStart, which, in my opinion, has no equal," Walsh said, calling Georgia's workforce training initiative "absolutely the best run program of its kind anywhere."

"Add to that the appeal of Savannah, which makes it easy to recruit and relocate employees and even easier to get customers and potential customers to visit, and it's a great place to be doing business," he said.

A special honor

Earlier this month, Walsh and other Mitsubishi Hitachi executives were in Atlanta, where Gov. Nathan Deal presented Savannah Machinery Works with the 2015 Georgia Manufacturer of the Year award for medium-sized businesses. The award is presented to manufacturers who demonstrate a high degree of corporate responsibility, provide a positive economic impact on Georgia and who set high marks for workforce excellence.

"We're really honored to be singled out by the state with this award," Walsh said. "It confirms our commitment - to both the community and to the customers we serve - to provide the highest quality and most energy efficient power generation equipment from our key facility here in Georgia."

ABOUT MITSUBISHI HITACHI POWER SYSTEMS AMERICAS

Headquartered in Lake Mary, Fla., Mitsubishi Hitachi Power Systems Americas Inc. provides a variety of products and services for the electric power generation industry, including gas, steam and geothermal turbines, boiler and environmental control systems. The company's parent is Fortune 150 firm Mitsubishi Hitachi Power Systems Ltd. of Japan. Learn more atwww.mhpowersystems.com.