All data are based on the daily closing price as of December 20, 2024

Mitsubishi Heavy Industries Partners with Airbus Amid Boeing Setbacks

MHI to manufacture emergency doors for Airbus A321neo in Vietnam, diversifying away from Boeing
Japan
m 7011.TSE Blue Chip 150
Share this on

Mitsubishi Heavy Industries (MHI) has signed a contract with Airbus to supply emergency doors for the A321neo, Nikkei reports. This move is part of MHI’s strategy to reduce its reliance on Boeing, which has faced significant production and safety challenges.

The emergency doors will be produced by MHI Aerospace Vietnam, with mass production expected to commence in August. Airbus highlighted this partnership as a step towards building a robust global supply chain with high-quality partners.

The Japanese commercial aircraft market, including airframe parts and engines, was valued at NT$1.04 trillion ($6.6 billion) in 2023, primarily driven by Boeing’s midsize and large aircraft. However, as Boeing’s market share declines, opportunities with Airbus present new prospects for the Japanese aviation industry.

The post-pandemic recovery has spurred a surge in aircraft demand. In 2023, global aircraft orders reached 4,070, tripling the pre-pandemic figures from 2019. Airbus received 2,454 of these orders, significantly outpacing Boeing, which secured 1,456 orders. Despite high demand, Airbus delivered only 735 aircraft that year due to production constraints.

This partnership marks a significant shift for MHI, which previously supplied parts for the now-discontinued Airbus A380. The collaboration on the A321neo, a leader in the small passenger aircraft market, underscores MHI’s strategic pivot to diversify its customer base and leverage the growing demand in the aviation sector.

 

 

Share this on
Jakota Newsletter

Stay ahead in the JAKOTA stock markets with our roundup of vital insights

Icon scroll to top