WASHINGTON/BALTIMORE (BBN) — (Update on October 19, 2020 to include interview with Maryland Governor Larry Hogan welcoming the interest in Baltimore by Mitsubishi Corporation CEO Takehiko Kakiuchi) — Mitsubishi, the giant Japanese industrial conglomerate, is seriously mulling moving Mitsubishi Electric and even Mitsubishi Heavy Industries’ US headquarters to Baltimore, Maryland, Mitsubishi sources told Capitol Intelligence.

[Maryland Governor Larry Hogan speaks to Capitol Intelligence/CI GCA using CI Glass on Mitsubishi CEO Takehiko Kakiuchi looking to make Baltimore Maryland the US headquarttes for Mitsubishi Heavy Industries and Mitsubishi Electric at St. Michael’s, Maryland. October 19, 2020]
Mitsubishi was greatly impressed with Baltimore’s unique investment opportunities and the pro-business policies of Governor Larry Hogan when they met with the Republican governor during the National Governors Association Winter meeting in Washington, DC, the sources said. Hogan has just ended his term as chairman of the NGA.

In an interview with Capitol Intelligence in St. Michaels, Maryland, Governor Hogan said he sincerely welcomes the interest expresssed by Mitsubishi Corporation CEO Takehiko Kakiuchi to make Baltimore, Maryland the future US headquarters of its important industrial subsidiaries such as MHI and Mitsubishi Electric.

Julian Boykin, a board member of the public-private Maryland Marketing Partnership said the organization is already working to give a full Maryland welcome to Mitsubishi.

The Japanese business delegation to the NGA was led by Tsuyoshi Nagano, the chairman of Japan’s leading insurance company Tokio Marine Holdings, Inc.

Baltimore is highly attractive because of its location between Washington and New York City; the most efficient deep water port (Panamex) in the United States; and as the headquarters of the world biggest asset managers such as Legg Mason, T.W. Rowe Price and Amsterdam-based Aegon unit TransAmerica.

[Tokio Marine Holdings, Inc Chairman Tsuyoshi (Nick) Nagano speaks to Capitol Intelligence/CI GCA using CI Glass on investing in US infrastructure and Baltimore at National Governors Association Winter Meeting in Washington, DC. February 8, 2020]

Sources close to Maryland Governor Hogan said Mitsubishi Electric and Mitsubishi Heavy Industries are welcomed with open arms and noted Mitsubishi will join other major utilities players in Baltimore such as Chicago-based Exelon Corporation (NYSE: EXC) unit Constellation and French giant, Voelia.

Governor Hogan personally but his best effort in trying to convince Amazon owner Jeff Bezos to locate the company’s second heaquarter in Baltimore as part of Hogan’s ultimate goal to convince a Global Fortune 100 company to make Baltimore their headquarters.

Hogan had reportedly offered a more than USD 5bn incentive packagethan USD 5bn incentive package to Jeff Bezos for choosing to put AmazonHQ2 at Port Covington, the attractive downtown Baltimore development property owned by UnderArmour founder Kevin Plank.

Mitsubishi decision to abandon California and New York, two states in steady economic decline, for one of America’s fastest growing cities – Baltimore — is part of a new trend of Japanese companies rethinking their strategies to succeed in the world’s largest economy.

Another company likely to transfer their US headquarters is Japan’s Kawasaki Locomotives currently based in the affluent ex-burbs of New York City, Armonk.

[Japan External Trade Organization Chairman and CEO Hiroyuki Ishige speaks to Capitol Intelligence/BBN using CI Glass on US growth economic growth opportunities at Center for Strategic and International Studies forum in Washington, DC. October 16, 2018]

A Kawasaki Locomotive source said the company, which specializes in providing subway cars and trains to US mass transit, has fallen on hard times after losing several important tenders to its competitors.

“Kawasaki management sort of lost the plot in Armonk. They are in a bad for business state as New York, they cannot recruit the best people as Armonk and West Chester County is too expensive, and there is absolutely no diversity,” the source said

Another main reason that Mitsubishi is looking at Baltimore is President Donald J. Trump’s Opportunity Zones tax credits for companies investing in America’s economically depressed urban and rural areas, the sources said.

The opportunity zones tax incentives program offers companies such as Mitsubishi Electric the ability to pay zero capital gains if they hold their investment over a decade.

[President Donald J. Trump makes historic announcement of “a USD 500bn “Platinum Plan” to help create 3m new jobs, 500,000 new companies and free up USD 500bn of capital for Black American businesses during Black Economic Empowerment conference in Atlanta, Georgia. September 25, 2020]

Last Friday [September 25, 2020], President Donald J. Trump outlined a historic USD 500bn “Platinum Plan”  that will increase Black American access to capital via USD 400bn in business loans via minority-owned financial institutions, USD 40bn in direct investment Black owned business with the goal of creating 3m new jobs and 500,000 businesses for African-Americans.

America’s incoming president, Joe Biden, has already said he will keep Trump’s Opportunity Zone tax credits and is under pressure by the very powerful Congressional Black Caucus to implement Trump’s proposed USD 500bn “Platinu Plan.

By PK Semler in Washington, DC and Baltimore, Maryland.

For more information please call +1-202-549-3399 or email pks@capitolintelgroup.com
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