Mitsubishi discusses plans to acquire Mitsui E&S Shipbuilding

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Mitsui’s Tamano works will become a division of MHI (Mitsui file photo)

Posted on August 4, 2021 at 7:12 PM by

The maritime executive

As the next step in consolidating the Japanese shipbuilding industry, Mitsubishi Heavy Industries has announced plans for its new specialist operations in warships and government ships. MHI previously announced that it has agreed to take over Mitsui E&S Shipbuilding operations at Tamano Works in Okayama City, southern Japan. The acquisition is pending the results of the review currently underway by the Japan Fair Trade Commission (JFTC).

According to an announcement earlier this week, the shipyard will be relaunched as the Mitsubishi Heavy Industries Maritime Systems Co. With the inauguration of the new company, MHI and MHI Maritime Systems plan to integrate their respective technological strengths and expertise into aim to expand their product lines in warships and government ships, improve their product development capabilities and improve production efficiency. The two partners plan to combine their accumulated resources in labor-saving and unmanned vehicle technologies in the maritime sphere, areas of increasing importance in recent years. This will strengthen their development and engineering capabilities and accelerate the market launches of new products that meet customer needs.

MHI and MHI Maritime Systems hope to make a greater contribution to Japan’s maritime safety while helping to revitalize the country’s declining shipbuilding industry.

After years of financial losses, Mitsui E&S Shipbuilding began in 2020 to work on a plan to strengthen the business as part of a larger consolidation in the shipbuilding industry. Mitsui said he plans to walk a factory-less business model making the best use of his design and development strengths.

In recent years, Mitsui had focused on building and repairing auxiliary vessels, such as supply vessels and oceanographic research vessels for the Japanese Ministry of Defense, as well as government vessels such as patrol vessels. in local fishing waters. In recent years, the company has also actively developed new technologies integrated into autonomous underwater vehicles (AUV) and autonomous surface vehicles (ASV).

When the companies announced the consolidation in the spring, MHI said Mitsui E&S Shipbuilding’s products and technologies were a perfect complement to its existing operations and would be used to further strengthen MHI’s operations of its Naval Ship & Maritime Systems division. The company also plans to actively engage in a wide range of dual-use areas, including cybersecurity products and unmanned systems.

Meanwhile, Mitsui also said he signed a comprehensive agreement with Tsuneishi for commercial shipbuilding operations. Since 2018, the two companies have been cooperating for the construction of commercial vessels for tankers, bulk carriers and container ships. As part of the plan, Tsuneishi will invest in the new joint venture and own 49% of the company. Mitsui recently completed construction of its last commercial vessel.

Following the reviews required by the Fair Trade Commission and other relevant authorities, the transfer of operations to MHI is expected to be completed in October 2021.


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