Japan's Top 2 Shipbuilders Join Hands

Economy

Tokyo, Nov. 29 (Jiji Press)--Imabari Shipbuilding Co. and Japan Marine United Corp., Japan's largest and second-largest shipbuilders, said Friday that they have reached a basic agreement on capital and business tie-ups.

With the alliance, the shipbuilders aim to strengthen their international competiveness at a time when South Korean and Chinese rivals are going through major realignment to grow stronger.

Imabari and JMU hope to seal a final deal by the end of March next year after working out details of the alliance.

The basic agreement calls on JMU to issue new shares to Imabari and the two to set up a new company to design and sell commercial ships excluding liquefied natural gas carriers, for which Imabari now operates a design and sales firm jointly with Mitsubishi Heavy Industries Ltd. <7011>.

Imabari and JMU are also set to cooperate in developing new ship production technologies and utilizing distribution facilities while keeping their management independence intact.

[Copyright The Jiji Press, Ltd.]

Jiji Press