JFE, IHI Shipbuilding Target $6.2 Billion in Sales: Report
Bloomberg reported that JFE Holdings and IHI Corp. will seek to increase sales of their combined shipbuilding units by about 30 percent in five years to fend off competition from South Korean and Chinese rivals. The units, set to be merged on October 1, will target annual revenue of $6.2 billion by 2017, said Shinjiro Mishima, who will be president of the new entity. The company will speed up development of fuel-efficient and cost-competitive ships, including on container vessels, bulk carriers and oil tankers, he said. Combining JFE’s Universal Shipbuilding and IHI Marine United Inc. will create Japan’s biggest shipbuilder, which will challenge larger rivals, including Hyundai Heavy Industries Co., the world’s largest.
Report: IHI, JFE to Merge Shipbuilding Units
Reuters is reporting that JFE Holdings Inc and IHI Corp will merge their shipbuilding units in a bid to remain competitive as demand for vessels contracts and Chinese rivals undercut operations hobbled by a strong yen. JFE Holdings and IHI said they aim to finalize an agreement by August, with operations to begin next year.
IHI Shipbuilding Unit Fills Out Green Lineup
According to a report from The Nikkei, IHI Marine United Inc. has developed a tanker and bulk carrier that reportedly emits 30% less carbon dioxide than its existing offerings. The IHI Corp. subsidiary modified the bow design to reduce wave resistance and boosted the efficiency of the screw propeller. (Source: The Nikkei)
IHI to Buy More Overseas Components
According to a May 14 report from Bloomberg, IHI Corp., Japan’s second-largest heavy-machinery maker, plans to increase imports of shipbuilding components to counter a stronger yen. The company’s IHI Marine United Inc. unit plans to buy parts including pumps and motors from South Korea and other nations, said Shigemi Kurahara, the incoming president of the Tokyo-based subsidiary. IHI forecast a 64 percent decline in shipbuilding operating profit this fiscal year to $10m because of the stronger yen. (Source: Bloomberg)
JFE, IHI to Begin Talks Possible Shipbuilding Merger
Japanese heavy machinery makers IHI Corp. and JFE Holdings Inc. said they have agreed to begin concrete talks on merging their shipbuilding subsidiaries, a move that would create 's biggest shipbuilder. The move comes as Japanese shipbuilders face intensifying competition from regional rivals and , the International Tribune reported. IHI and JFE will establish a committee to discuss the details of how operations of IHI subsidiary, IHI Marine United Inc., and its JFE counterpart, Universal Shipbuilding Corp., can be integrated, the companies said in a joint statement. They will also discuss production details, merger ratios and ways to stay competitive in shipbuilding operations, they said.
