JAPAN: Mitsubishi Heavy Industries is to split off its air conditioning and refrigeration business to a wholly-owned group company.

MHI Air Conditioning & Refrigeration will have a capitalisation of JPY150m (€1.15m) and is expected to become effective on October 1.

MHI says it needs a dynamic business management, capable of agile decision making to respond to changes in a global market vulnerable to changes in economic trends and environmental regulations.