MHI's Two New Firms Commence Operations

Maritime Activity Reports, Inc.

September 28, 2015

MHI Shipyard, Nagasaki Credit Wiklpedia CCL

MHI Shipyard, Nagasaki Credit Wiklpedia CCL


On October 1 two new wholly owned group companies of Mitsubishi Heavy Industries, Ltd. (MHI) succeeding to MHI's ship construction operations in the Nagasaki district will commence business operations. Mitsubishi Heavy Industries Shipbuilding Co., Ltd. will handle ship constructions, while Mitsubishi Heavy Industries Hull Production Co., Ltd. will manufacture hull blocks. By making full use of the diverse resources cultivated at the Nagasaki Shipyard & Machinery Works, the two new companies will pursue enhanced competitive strength by narrowing product lines to areas of core competence and engaging in more compact business operations.

Mitsubishi Heavy Industries Shipbuilding will focus on the construction of LNG and LPG gas carriers, a type of vessel in which MHI excels. Efficiency enhancement will be pursued primarily through production streamlining from continuous construction of the same ship type and supply chain management reforms. The new company will also achieve greater speed and mobility from a compact organizational structure, while measures will be taken to promote active communication within the organization, to strengthen cost competitiveness, and to stabilize earnings.

Mitsubishi Heavy Industries Hull Production will specialize in the production of large-scale hull blocks, an area in which the Nagasaki Shipyard's Koyagi Plant excels. The new company will pursue expansion in production scale, continuous production of blocks of identical type, and investments aimed at production streamlining. Plans also call for the company to market its large-scale hull blocks to other shipyards and steadily expand its production volumes. Leveraging its distinctive capabilities – for example, the ability to manufacture large-scale hull blocks indoors and its ability to supply multiple blocks simultaneously - the company will obtain assured quality and high productivity as well as short delivery times and lower costs.

Through the years the Nagasaki Shipyard & Machinery Works has handled a broad range of technologically advanced large-scale commercial ships. Going forward the two new companies will strive toward further development of MHI's commercial ships business by taking full advantage of and reorganizing these robust resources in terms of technology, production and staff.

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