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

People & Company News

USS Montpelier Modernization Contract for General Dynamics

The U.S. Navy has awarded General Dynamics Electric Boat a $46.4 million contract for planning efforts in support of maintenance and modernization work on USS Montpelier,

Pentair Opens Aquaculture Center of Excellence

Mindful that fish farming has the potential to help meet an expanding  population's need for protein in a world with increasing water constraints, Pentair announced

Scorpio Tankers' Buyback Plan, Newbuild Delivery

Scorpio Tankers Inc. announced today (i) a new $250 million Securities Buyback Program, (ii) that it has recently taken delivery of an MR product tanker and

Shipbuilding

Scorpio Tankers' Buyback Plan, Newbuild Delivery

Scorpio Tankers Inc. announced today (i) a new $250 million Securities Buyback Program, (ii) that it has recently taken delivery of an MR product tanker and

New Power Optimization Solution for LNG Carriers

NAPA and DSME launch tailored NAPA-DSME Power Solution for LNG carriers; leading LNG carrier shipyard offers specialized performance monitoring solution   South Korean shipbuilder,

BWTS Newcomer Sees Early Success

Norwegian manufacturer of ballast water treatment systems MMC Green Technology reports it has sold more than 70 systems since going commercial with its MMC BWMS two years ago,

Ship Repair & Conversion

Unicom Selects the Ecochlor BWTS for 10 Tankers

Ecochlor, Inc. announced that Unicom Management Services (Cyprus) Ltd. (Unicom), acting for SCF Group, signed a 10-vessel agreement for the Ecochlor Ballast Water Treatment System (BWTS) in Limassol,

Kongsberg Contracted to Support FLNG Conversion

Kongsberg Maritime secures position in the LNG market with electrical and automation contract for Golar Hilli FLNG   Keppel Shipyard in Singapore and Black & Veatch in the U.

Crowley to Manage 4 Jones Act Ships for Pasha

Crowley Maritime Corp.’s ship management group has been awarded a new contract with Sunrise Operations LLC, a subsidiary of The Pasha Group, of San Rafael, Calif.

Energy

Scorpio Tankers' Buyback Plan, Newbuild Delivery

Scorpio Tankers Inc. announced today (i) a new $250 million Securities Buyback Program, (ii) that it has recently taken delivery of an MR product tanker and

Kongsberg Contracted to Support FLNG Conversion

Kongsberg Maritime secures position in the LNG market with electrical and automation contract for Golar Hilli FLNG   Keppel Shipyard in Singapore and Black & Veatch in the U.

Statoil Awarded Licenses Offshore Nicaragua

Statoil informs it was today awarded four licenses offshore the Nicaraguan Pacific, covering an area of about 16,000 km2 in the largely unexplored Sandino Basin.

News

USS Montpelier Modernization Contract for General Dynamics

The U.S. Navy has awarded General Dynamics Electric Boat a $46.4 million contract for planning efforts in support of maintenance and modernization work on USS Montpelier,

Pentair Opens Aquaculture Center of Excellence

Mindful that fish farming has the potential to help meet an expanding  population's need for protein in a world with increasing water constraints, Pentair announced

Scorpio Tankers' Buyback Plan, Newbuild Delivery

Scorpio Tankers Inc. announced today (i) a new $250 million Securities Buyback Program, (ii) that it has recently taken delivery of an MR product tanker and

 
 
Maritime Contracts Maritime Standards Navigation Pipelines Pod Propulsion Salvage Ship Electronics Ship Simulators Sonar 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: 0.2168 sec (5 req/sec)