Mitsubishi Heavy Eyeing Possible Sale of Key Shipbuilding Plant
Tokyo, Dec. 18 (Jiji Press)--Mitsubishi Heavy Industries Ltd. <7011> said Wednesday that it has agreed with Oshima Shipbuilding Co. to jointly study ways to effectively use a core shipbuilding plant owned by the former, including its possible sale to the industry peer.
The two firms aim to reach a conclusion on the fate of the Koyagi plant, in the city of Nagasaki, southwestern Japan, by the end of March 2020. Oshima is the third-biggest shipbuilder in Japan.
The Koyagi plant, part of Nagasaki Shipyard & Machinery Works, is one of Mitsubishi Heavy's largest shipbuilding plants in Japan. Nagasaki is the place where Mitsubishi Heavy was established.
Mitsubishi Heavy sees a need to thoroughly review its shipbuilding operations at a time when profitability from the business has been declining in the face of fierce price competition from Chinese and South Korean rivals.
The sale of the Koyagi plant would symbolize the weakening position of many Japanese shipbuilders, industry sources said.
[Copyright The Jiji Press, Ltd.]