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.
JFE’s Ship Unit Targets Orders for Five Vessels
JFE Holdings Inc.’s shipbuilding unit is reportedly aiming to win orders for as many as five iron ore carriers, according to a report on www.businessweek.com. Iron-ore carriers including Nippon Yusen K.K. and Mitsui O.S.K. Lines Ltd. are expanding dry-bulk fleets to tap demand for the steelmaking material. Exports of the ore from Australia, the world’s largest shipper, are forecast to rise at an average annual rate of 7 percent to 2015, the Australian Bureau of Agricultural and Resource Economics said March 2. (Source: www.businessweek.com)
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.
JFE to Raise Stake in Shipbuilding
According to reports, Japanese steelmaker JFE Holdings Inc said it has reached an agreement with shipbuilder and engineering company Hitachi Zosen Corp to turn their shipbuilding joint venture into a JFE subsidiary. JFE will acquire an additional 34.9 percent stake in Universal Shipbuilding Corp, its 50-50 joint venture with Hitachi Zosen, for 34.9 billion yen. With the deal, JFE's stake in Universal Shipbuilding will increase to 85 percent while Zosen will hold the remaining 15 percent. JFE said the move is aimed at further increasing Universal Shipbuilding's business efficiency and profitability. Source: Thomson Financial News
JFE Consider Takeover of Hitachi Zosen Shipbuilding
JFE Holdings Inc. is considering taking over Hitachi Zosen Corp.'s shipbuilding operations, which are now conducted by Universal Shipbuilding Corp., a joint venture between the two firms, sources said Saturday. The deal would mark Osaka-based Hitachi Zosen's effective departure from shipbuilding. It will instead concentrate on its mainline environment equipment and plants business to try to bolster profitability, the sources said. The acquisition is expected to accelerate reconfiguration of the domestic shipbuilding industry. Demand for shipbuilding has increased amid the strong global economy. However, domestic shipbuilders face cutthroat competition with South Korean and Chinese rivals as well as deteriorating profitability due to rising materials costs.
