Japan’s Imabari Shipbuilding Makes Industry Peer JMU Subsidiary

Tokyo, Jan. 6 (Jiji Press)–Japan’s leading shipbuilder, Imabari Shipbuilding Co., said Tuesday that it has completed the process to acquire the second-biggest Japan Marine United Corp. The two companies account for more than half of the country’s total ship construction volume. By combining their production and purchasing capacities, they aim to better compete with their rivals in China and South Korea, which dominate the world market. “We’ve judged that it is necessary to further strengthen our relationship with JMU in view of the increasingly competitive global environment,” Imabari Shipbuilding President Yukito Higaki told a press conference in Tokyo. Higaki emphasized that the companies will take steps to boost production with government support. On Monday, Imabari Shipbuilding doubled its equity stake in JMU to 60 pct by buying 15 pct each from steelmaker JFE Holdings Inc. and heavy machinery maker IHI Corp. Even after the share transfers, JFE Holdings and IHI remain major shareholders with a stake of 20 pct each. Imabari Shipbuilding and JMU will continue to collaborate with JFE Holdings and IHI because of their relationships in the steel and security areas, Higaki said. Dealing with new fuels such as ammonia and hydrogen is considered impossible for a single shipbuilding group, he added. END [Copyright The Jiji Press, Ltd.]