Mitsubishi Heavy Industries Compressor International Corp. (MCO-I) began operations at its manufacturing and service facility in Pearland, Texas, outside Houston, the company said in an April 23 statement. The new Pearland Works complex handles packaging, shipping, storage, service and maintenance of compressors and mechanical drive steam turbines.

MCO-I was established in the U.S. in October 2012, the company’s president Gampa Bhat told Hart Energy. The Pearland Works facility is the first U.S.-based industrial facility for the Japan-owned company, which currently holds all of its manufacturing capabilities in Hiroshima. The company’s move to the Houston area was driven by the demand growth for compressors as shale gas production increases. “Our footprint in the U.S.A. in the last two or three years has been increased tremendously,” Bhat said.

“What we are trying to do in America is bring a manufacturing, service maintenance and repair facility which we have been providing our customers over the years from Japan,” Bhat said. As MCO-I’s global market share for compressors grows, the decision to build a Houston-area facility was the best way for the company to serve its American customers, Bhat said. The Pearland facility will be a huge advantage to North American customers, he said, as it “decreases lead time … We are closer to the customers [for all steps of the compressor purchasing process] including the installation, start-up, maintenance support, [and] the storage, and then in future, [we will be able to] provide parts manufacturing capabilities.”

Regarding the general slowdown in the energy industry due to lower oil prices, Bhat said MCO-I was largely unaffected.

“What we have seen in the oil market is that always, it fluctuates,” he said. “When the oil price is lower, it’s historically the petrochemical side, gas side—their business booms because the cost of energy’s a little lower.” And a boom for the petrochemical industry gives an edge to MCO-I, Bhat said.

“We are the primary compressor supplier for the petrochemical industry.”

Additionally, while some of the mega-projects may be delayed while prices remain low, many of the projects moving forward are smaller. That, Bhat said, gives MCO-I an advantage because “our technology allows us to maintain the compressor trains suitable for the smaller petrochemical industry, smaller pipeline industry type.”

Mitsubishi Heavy Industries Compressor International Pearland Works crane

Manufacturing capabilities at the facility will allow for “anywhere from 10,000 horsepower (hp) smaller types of trains all the way to LNG,” Bhat said. For particularly large compressors, he said the company would continue to manufacture compressors with up to about 100,000 hp in Hiroshima, “but bring them over here and package it and test it and send it to a customer.”

Bhat said that MCO-I already invested more than $75 million in the Pearland Works facility for its first phase. The 180,000 square foot facility currently offers capabilities for packaging and assembly, vertical and horizontal rotor storage, repair and maintenance services, administrative offices and training. According to a statement from the company, $26 million of new manufacturing equipment has also been purchased as well as a 300-ton overhead crane to allow for accommodation of various-sized machines.

While this grand opening marks the completion of phase one for the Pearland site, the company anticipates implementing a second phase at the facility to allow for testing and full manufacturing capabilities, according to the company’s statement. Once both stages are complete, Bhat said that Pearland Works will employ more than 200 people. Most employees would be in engineering and machining positions. Though he didn’t commit to a definite start-up date for the facility’s second phase, Bhat said, “The timeline we’re anticipating [for phase two implementation is] within the first quarter of 2017.”

Contact the author, Caryn Livingston, at clivingston@hartenergy.com.