Japan’s Mitsubishi Heavy Industries Ltd. and Boeing Co. are close to inking a comprehensive tie-up covering joint development of passenger aircraft and satellites, a report said Saturday.
Under the deal, the two companies will jointly develop and make next-generation passenger aircraft, communication satellites and rockets, the Nihon Keizai Shimbun business daily reported.
Boeing is eyeing a stronger presence in the growing Asian market while Mitsubishi expects the aviation business to become its major source of income in the future, the daily said.
The tie-up with Boeing marks Mitsubishi’s entry into the communication satellite business, it said.
Mitsubishi, Japan’s top heavy machinery maker, has been producing aircraft components for Boeing.
Nihon Keizai said Mitsubishi agreed with Airbus last year on a parts supply deal, but the Japanese company was unlikely to expand its tie up with the European consortium to participate in the A3XX aircraft programme.
