June 3, 2017 2:35 am JST

Mitsubishi Heavy to combine shipbuilding design teams for overhaul

Reorganization lets company test waters for possible spinoff

Engineers at the Nagasaki shipyard will be among those reassigned to the technology center in Yokohama.

TOKYO -- Mitsubishi Heavy Industries will consolidate shipbuilding design and engineering workforces now scattered around Japan as part of an effort to revive its vessel business.

The move creates a roughly 130-member team that will handle all steps from design and development to parts procurement and sales.

A global vessel glut has hit Mitsubishi Heavy's shipbuilding business hard, prompting the company to consider spinning the operation off.
The structural overhaul will enable the Japanese company to prepare for such potential restructuring while enhancing efficiency.

Engineers now at the Tokyo headquarters and the Nagasaki and Shimonoseki shipyards in southern Japan will be brought under a new vessel and marine technology center in Yokohama as of July 1.

The center, which will oversee production sites, will also tie up with peers such as Imabari Shipbuilding, Japan's top shipbuilder in terms of tonnage, and Namura Shipbuilding, entrusting part of construction of large container vessels to them.

The consolidation will mean faster designing of vessels with high added value and quicker development of energy-saving technologies. Mitsubishi Heavy's center may also design vessels ordered for Imabari or Namura.

(Nikkei)

Mitsubishi Heavy Industries, Ltd.

Japan

Market(Ticker): TKS(7011)
Sector:
Industry:
Producer Manufacturing
Industrial Machinery
Market cap(USD): 13,281.69M
Shares: 3,373.64M

Namura Shipbuilding Co., Ltd.

Japan

Market(Ticker): TKS(7014)
Sector:
Industry:
Producer Manufacturing
Trucks/Construction/Farm Machinery
Market cap(USD): 411.04M
Shares: 69.03M

Get Insights on Asia In Your Inbox

To read the full story, Subscribe or Log in

Get your first month for $0.99

Redeemable only through the Subscribe button below

Once subscribed, you can…

  • Read all stories with unlimited access (5 articles per month without subscription)
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

We could not renew your subscription.
You need to update your payment information.

To read the full story, Subscribe or Log in

Once subscribed, you can…

  • Read all stories with unlimited access (5 articles per month without subscription)
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

We could not renew your subscription.
You need to update your payment information.