Mitsui E&S to Sell Warship Biz to Mitsubishi Heavy
Tokyo, June 13 (Jiji Press)--Struggling Mitsui E&S Holdings Co. <7003> has announced a basic agreement to sell its destroyer manufacturing and repair, and other shipbuilding operations for Japan's Defense Ministry to Mitsubishi Heavy Industries Ltd. <7011>.
Mitsui E&S, formerly Mitsui Engineering & Shipbuilding Co., and Mitsubishi Heavy are expected to sign a definitive deal by year-end, aiming to complete the business transfer in October 2021.
The move will leave Mitsubishi Heavy and Japan Marine United Corp. as the only manufacturers of destroyers in Japan. The Mitsui E&S group's shipbuilding operations for the ministry are now being undertaken by subsidiary Mitsui E&S Shipbuilding Co.
Mitsui E&S and Mitsubishi Heavy are already in a partnership for warship building.
After the business transfer, Mitsui E&S Shipbuilding plans to continue warship building and repair operations at its key plant in the city of Tamano, Okayama Prefecture, western Japan, where its predecessor was founded in the 1910s.
[Copyright The Jiji Press, Ltd.]