MES President Addresses Company Developments

By Eric Haun
Monday, January 06, 2014
Takao Tanaka

Mitsui Engineering & Shipbuilding Co., Ltd. (MES) president Takao Tanaka delivered a New Year message in which he comments on future market directions and developments as related to MES as well as the industry as a whole. Tanaka outlined his company’s approach to stabilizing profits across each market segment in which it is present, highlighting a company-wide focus on expansion and balanced growth.

Tanaka said the present business environment sees global increases in energy demand and the progression of structural changes in the industry resulting from the shale gas revolution, creating a positive business environment for certain business segments within MES. “Our chemical plant business, environment and energy business, and container crane business are all benefiting from the current environment,” Tanaka said, adding that the company’s subsidiaries Mitsui Ocean Development & Engineering Co., Ltd. is also performing well in its ocean resources development business.

While other segments experience growth, MES’ new shipbuilding and marine engine businesses, however, are facing a decline in the ocean transport market that has led to a decrease in profits, placing a group-wide focus on achieving recovery in these markets.

“To adapt to such significant change in the market and overcome severe condition, it is vital that we address issues facing management with sense of urgency,” Tanaka said. “The direction in which our company will head is one that enables us to realize a balanced business portfolio that combines continuous growth with stable earnings by the final year of the plan in FY2016.”

MES’ answer to industry hardships materialized in June of last year with the launch of a new operating structure and the draft of its “Midterm Business Plan 2014” (MBP14). Tanaka said MES will work specifically toward two types of reform.

“Our first goal is to innovate the business areas. With our current core businesses of shipbuilding and marine engines, we are facing intensifying product competition. We will strive to make a qualitative shift in our product lineup so that we can achieve a competitive advantage when the shipbuilding market does recover.”

“Our second goal is to innovate the business models,” Tanaka said. “In the past, our business model was a build and sell model through which we sold either finished products or plants such as EPC (engineering, procurement, and construction) projects. Moving forward, we will expand this model to include follow-up services, operational maintenance, and business management to create a comprehensive business model that covers the entire life cycle of our core business products. This business model will help us achieve profit stability.”

“There is no future in simply continuing conventional methods. These two reforms are vital to our becoming a company with future dreams and a company that has meaning in society,” Tanaka concluded.
 

Maritime Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Prosafe Q2 Earnings Below Expectations

Offshore accommodation rig provider Prosafe reported second-quarter earnings below expectations on Thursday and said that its short-term market outlook is weaker

'Double Jeopardy – Trial by Media, Trial by Law' London Opening

BIMCO notes that the highly acclaimed "Double Jeopardy - trial by media, trial by law" first showcased at the BIMCO AGM in Dubai earlier this year is to be brought

Week's Ocean-Going Shipbuilding Orders Sparse

Despite some media reports of more significant ordering, there is only one firm shipbuilding order to report in the drybulk sector, according to the latest Clarkson Hellas S&P Weekly Bulletin,

Shipbuilding

Week's Ocean-Going Shipbuilding Orders Sparse

Despite some media reports of more significant ordering, there is only one firm shipbuilding order to report in the drybulk sector, according to the latest Clarkson Hellas S&P Weekly Bulletin,

DSME Gets UK Shipyard Consulting Contract

S. Korea's DSME says it is to provide naval vessel production and management consulting services for British defense company BAE. Under the terms of the agreement,

Two MacGregor Subsea Cranes Ordered for Chinese PSVs

MacGregor, part of Cargotec, has secured a new contract from Chinese shipbuilder, Fujian Mawei Shipbuilding Ltd., for two 100-metric-ton active heave-compensated subsea MacGregor cranes.

Ship Repair & Conversion

Permanent On-site Collision Damage Repair in Greece

In July Hydrex mobilized a team of diver/technicians to Syros, Greece, for a complex repair operation on a 118-meter, 8550 DWT chemical tanker. The vessel had suffered

Pipeline Corrosion Shutters Statoil's Troll C Platform

Norway's Statoil shut oil and gas production at its Troll C platform in the North Sea after inspections found corrosion damage on a pipeline, the company said in

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

Energy

Lloyd’s Register's New, Consolidated, Rules for Offshore Units

Lloyd’s Register has launched its new Rules for Offshore Units in one single document following an in-depth consultation with industry. It signals a move by

High Bids in Western GofM Lease Sale

U.S. Government agency BOEM informs that Western Gulf of Mexico Lease Sale 238 attracted US$109,951,644 million in high bids for 81 tracts covering 433,823 acres on the U.

Update: LOOP Terminal Shutdown

LOOP's Offshore Marine Terminal suspended its crude oil offloading operations on August 13 while investigating an oil sheen discovered along the pipeline. According to the terminal,

News

Lloyd’s Register's New, Consolidated, Rules for Offshore Units

Lloyd’s Register has launched its new Rules for Offshore Units in one single document following an in-depth consultation with industry. It signals a move by

Star Bulk to Acquire 34 Drybulk Vessels

Star Bulk Carriers Corp. announced today that it has entered into definitive agreements with Excel Maritime Carriers Ltd.  pursuant to which the Company will

Update to Fire Damage to Australian Patrol Boat

Armidale Class Patrol Boat HMAS Bundaberg suffered significant damage due to a fire which occurred on Monday, August 11, 2014 in Brisbane. The boat was undergoing

 
 
Maritime Contracts Naval Architecture Offshore Oil Pipelines Salvage Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2317 sec (4 req/sec)