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 August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

USCG Respopnds to Sunken Vessel Near Sitka, Alaska

The Coast Guard is responding to the sinking of a fishing vessel in Kelp Bay near Sitka Friday. Coast Guard personnel from Sector Juneau, the Coast Guard

Next LCS to be Named USS Minneapolis/St. Paul

Secretary of the Navy Ray Mabus announced today that the next Freedom-variant littoral combat ship will be named USS Minneapolis/St. Paul (LCS 21). The future Minneapolis/St.

Hapag-Lloyd Adds 6,000 Reefer Containers

In order to profit from the growing reefer markets in South America and Asia, Hapag-Lloyd has ordered 6,000 cutting-edge reefer containers – more than ever before in the company’s history.

Shipbuilding

Next LCS to be Named USS Minneapolis/St. Paul

Secretary of the Navy Ray Mabus announced today that the next Freedom-variant littoral combat ship will be named USS Minneapolis/St. Paul (LCS 21). The future Minneapolis/St.

AET Names DP Shuttle for Statoil Charter

Petroleum tanker owner and operator AET today named its newest vessel, a 120,000 DWT DP2 shuttle tanker, Eagle Bergen.    Eagle Bergen is the second of two vessels

Austal Delivers Final Cape Class Patrol Boat

Cape York, the last of eight new Cape Class Patrol Boats for Australian Border Force (formerly Australian Customs and Border Protection) has been delivered by shipbuilder

Ship Repair & Conversion

Ballast Water System Retrofits for 11 Containerships

Eleven container vessels owned by Bernhard Schulte GmbH & Co. KG, based in Germany, are to be retrofitted with Wärtsilä Aquarius Ballast Water Management Systems (BWMS), Wärtsilä announced today.

Jotun, COSCO Celebrate 10,000th Antifouling Applications

In July, Jotun and Dalian Ocean Shipping Company (a wholly-owned subsidiary of China Ocean Shipping Company, Cosco Group), celebrated the 10,000th application of SeaQuantum,

RYDLYME Marine Selects GoM Distributor

RYDLYME Marine has named R Carter & Associates, Inc. of Mobile, Ala. a new stocking distributor for the Gulf of Mexico area, targeting shipyards, larger workboats,

Energy

AET Names DP Shuttle for Statoil Charter

Petroleum tanker owner and operator AET today named its newest vessel, a 120,000 DWT DP2 shuttle tanker, Eagle Bergen.    Eagle Bergen is the second of two vessels

US Oil Drillers Cut Rigs as Crude Prices Collapse

U.S. energy firms cut a surprisingly sharp 13 oil rigs this week, the first drop in seven weeks, as a renewed slump in prices this summer forced drillers to make a second round of cut-backs.

Asia Tankers-VLCC Rates Will See More Volatility

VLCC market to be "hot" in Q4 -VLCC broker. Freight rates for very large crude carriers (VLCCs) face a roller-coaster ride on uncertain cargo volumes and vessel

News

USCG Respopnds to Sunken Vessel Near Sitka, Alaska

The Coast Guard is responding to the sinking of a fishing vessel in Kelp Bay near Sitka Friday. Coast Guard personnel from Sector Juneau, the Coast Guard

Next LCS to be Named USS Minneapolis/St. Paul

Secretary of the Navy Ray Mabus announced today that the next Freedom-variant littoral combat ship will be named USS Minneapolis/St. Paul (LCS 21). The future Minneapolis/St.

MSC Upgrades Europe-West Africa Service

As part of our objective to continually improve our services to customers, MSC is delighted to announce an upgrade to its Angola Express service with a first

 
 
Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | 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: 1.3488 sec (1 req/sec)