Mitsubishi Heavy to Invest Additional 200 B. Yen in MRJ

Economy Science Technology

Tokyo, Sept. 15 (Jiji Press)--Mitsubishi Heavy Industries Ltd. <7011> plans fresh investment of some 200 billion yen in the development of the Mitsubishi Regional Jet, it was learned Saturday.

Of the funds, the Japanese heavy machinery maker intends to use about 120 billion yen in fiscal 2018 through next March so the company can deliver the first unit of the small jetliner in the middle of 2020, informed sources said.

In a report released Thursday, Masanori Koguchi, senior executive vice president of Mitsubishi Heavy, said that an end to the first-ever Japanese project to develop a jetliner "is coming in sight."

Mitsubishi Aircraft Corp., the subsidiary undertaking the project, saw its debts exceed assets by some 110 billion yen at the end of fiscal 2017, due to a cost spike stemming from a substantial delay in the development.

Mitsubishi Heavy plans to eliminate the excessive liabilities through, among others, a debt-for-equity swap in fiscal 2018 using part of the 120 billion yen, according to the sources.

[Copyright The Jiji Press, Ltd.]

Jiji Press