June 25 - Recently I accompanied the American Chamber of Commerce Board of Directors on its visit to Mitsubishi Heavy Industries Nagoya Aerospace Systems Works. We saw the fabrication and assembly of the composite wing center for Boeing's new 787 jet. About 1,000 Mitsubishi employees are now working to produce a wing that is much lighter and more efficient to reduce the new jet's consumption of fuel. Toray Industries manufactures the composite materials for these wings. Walking through the factory, I could see for myself the tremendous scale of investment needed for a plant that constructs 30-meter long wings.

Mitsubishi's partnership with Boeing began 30 years ago when they collaborated on producing Boeing's 767. Ten years later, Boeing and Mitsubishi strengthened their partnership as Mitsubishi began producing the rear part of Boeing's 777 wide-body jet. With this extensive history of industrial collaboration, Boeing and Mitsubishi agreed five years ago to develop jointly the new 787 jet. We were told that Boeing also works extensively with Fuji Heavy Industries and Kawasaki Heavy Industries on this enormous project, so that over 35 percent of the value of the 787 Dreamliner will be manufactured in Japan.

We also visited the offices of the Mitsubishi Regional Jet, a new 70-90 passenger medium-range airplane that is scheduled for delivery to customers in 2013. Mitsubishi is working closely with many American aerospace firms on this project. For example, the ultra-efficient engines will be manufactured by the American firm Pratt and Whitney. Mitsubishi Aircraft Corp. President Egawa told me that American products make up over 60 percent of the value of each jet. We were able to see a mock-up of the Mitsubishi Regional Jet, and I found the seats quite comfortable.

As we left the Mitsubishi plant, I thought more about this wonderful example of U.S.-Japan industrial collaboration. Each time Boeing sells a 787 jet, it is creating jobs in Japan. When Mitsubishi sells its regional jet, it is also creating demand for American products. The aerospace sector is one excellent example of U.S.-Japan business collaboration.

Until next time,

Jim