Kawasaki Heavy, Mitsui seeks giant shipbuilding merger

Featured Japan - April 23rd, 2013
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Talks on a possible business integration between Kawasaki Heavy Industries Ltd. and Mitsui Engineering & Shipbuilding Co. are under way, a move that could create a giant in Japan’s shipbuilding-heavy machinery industry.

The two companies, with aggregate consolidated sales of 1.8 trillion yen, are aiming to expand their business in the global market by combining their strengths in a range of areas, such as plant construction, reports the Japan Times.

The move, however, would not drastically increase the market share of Japanese shipbuilders due to a slump in orders compared to other Asian rivals.

The two companies are also taking into consideration multiple integration formats, including an outright merger.

Kawasaki Heavy has made inroads in building a global business network through such steps as setting up shipyards in China under a joint venture arrangement while Mitsui Engineering is known for its expertise in building offshore oil and gas facilities.

Kawasaki Heavy is forecast to have posted 1.3 trillion yen in group sales in the business year to March 31 against 577 billion yen expected to have been earned by Mitsui Engineering.