Nihon Keizai Shimbun News

Kawasaki Heavy Industries is said to be considering integrating its shipbuilding business with those of Ishikawajima-Harima Heavy Industries Co. (IHI) and Mitsui Engineering & Shipbuilding Co. A spokesman for Kawasaki Heavy, Japan's second-largest heavy machinery and shipbuilding firm, said it sees such consolidation as one option but no accord has been reached. Business daily Nihon Keizai Shimbun reported on Wednesday that IHI and Kawasaki Heavy had reached a basic agreement to merge their shipbuilding businesses in an equally owned joint venture in October 2002. Third-ranked IHI said separately in a statement on Wednesday that it is considering consolidating its shipbuilding business with Kawasaki Heavy but they have not reached final agreement.