Mitsubishi expansion to bring 50 jobs in its wake

Growing demand from power generation customers could lead to the doubling of the 50-strong workforce at the new Leeds base of Mitsubishi Power Systems Europe.

The £120m turnover company has invested almost £2.5m in the 40,000 sq ft service centre at Navigation Park, in Hunslet, Leeds.

A further investment will bring a new inspection and testing laboratory and fully-equipped workshop on stream within six months.

MPSE serves the traditional power generating industry and the developing renewable energy sector.

The planned expansion follows strong business performances in 2009 and 2010, with further growth anticipated in 2012.

The UK operations also include a London-based European headquarters.

MPSE is also planning to establish a training and development programme for engineers.

The Leeds-based operation serves the power industry in Europe, the Middle East and Africa. The business has major contracts at Damhead Creek, Huntstown, Teesside and Saltend, as well as having recently been involved in completing projects in Turkey and Egypt.

Director Juergen Richter, the head of the MPSE Leeds service Centre, said the base was chosen because of its motorway links, inter-city rail routes, regional airports, and the quality of the labour pool.

He added: “The new service centre provided a clean sheet for internal design and layout, which included a £300,000 fit-out with office space to accommodate the expanding workforce.

“The Leeds service centre provides support around the clock for all our clients.

“We are able to mobilise to site within 24 to 48 hours, providing full engineering support from tooling and engineering hardware to specialist technical knowledge.”

MPSE was established in Leeds in 2008 and ran alongside Mitsubishi Printing in South Accommodation Road until the recent move.

The printing business is housed within the new service centre.

The warehouse is used to store stocks and parts which are linked to the wind turbine industry, and is also home to a suite of giant containers.

A company spokesman said: “Even these containers are dwarfed by the occasional appearance of a Mitsubishi gas turbine rotor measuring 12m by 4m and which swings into action for stand-by turbine power generation.”

Paul Stephens, head of economic development at Leeds City Council, commented: “This is a significant investment for Mitsubishi and for Leeds.

“It plays to the city’s traditional strengths in engineering and its geographical advantages as a business location, allowing companies to service clients and access markets across the UK, as well as providing excellent connectivity with London and Europe.”

Although MPSE is expanding, there have been concerns that Britain’s fragile economic recovery is slowing down, with some engineers and manufacturers struggling.

Earlier this week, figures from the Office for National Statistics showed economic growth slowed to a sluggish 0.2 per cent in the second quarter of the year.

Andy Tüscher, Region Director for the EEF, the manufacturers’ organisation, said yesterday: “The mediocre expansion in the second quarter was largely anticipated with temporary factors weighing heavily on business in April.

“But after a tough start activity in manufacturing and services looks to have gained ground in May and June. We now need to look through these statistical quirks to get a clearer picture of the path of recovery.

“However, concerns remain about the resilience of our economy to potential further headwinds in the second half of the year.

“But for now, Government needs to maintain its focus on its supply side reforms to ensure the recovery beds down.”

The ONS said the second-quarter figure would have shown growth of up to 0.7 per cent if it had not been for one off factors such as the extra bank holiday for the Royal wedding and the disruption to British manufacturng caused by the Japanese tsunami.

Technology and turbines

Mitsubishi Power Systems Europe (MPSE) was set up in 2007 to bring together technology and expertise in a business covering Europe, the Middle East and Africa.

According to its website, MPSE offers a one-stop shop for the supply and servicing of advanced energy technology including gas and steam turbines, marine propulsion equipment and wind turbines

MPSE is a part of Mitsubishi Heavy Industries.

The company’s website said:

“Since 2007, we have established and developed our business across the region and have further expanded our services through the acquisition of maintenance partners.”