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Japan's two major shipbuilders will re-integrate into a new manufacturer of marine diesel engines
Recently, Japan’s Mitsubishi Heavy Industries disclosed a tripartite cooperation plan to form a “specialized marine diesel engine manufacturerâ€.
Mitsubishi Heavy Industries Marine Machinery and Engine Co., Ltd. (MHI-MME), a wholly-owned subsidiary of Mitsubishi Heavy Industries, has reached an agreement with Kobe Diesel Co., Ltd. to integrate its marine diesel engine business and is headquartered in Hyogo Prefecture, Japan.
Mitsubishi Heavy Industries said that the three parties are seeking to “vertically integrate†their respective businesses, set up a dedicated marine diesel engine manufacturer, fully integrate business administrative processes, cover upstream and downstream value chains, and establish a highly flexible business operation system to promote the sustainable development of UE engine business. To take advantage of Mitsubishi Heavy Industries' advanced technology support, Mitsubishi Heavy Industries Marine Machinery and Engine Co., Ltd.'s high value-added licensing model, and Kobe's low-cost business model.
The cooperation between Mitsubishi Heavy Industries and Kobe Diesel has a long-term historical basis. In 1957, Mitsubishi Heavy Industries signed a technical cooperation agreement with Kobe Diesel. The Kobe diesel engine was licensed by Mitsubishi Heavy Industries to manufacture Mitsubishi Heavy Industries' UE series engines. So far, Kobe diesel engines have produced and sold more than 2,000 marine diesel engines.
Mitsubishi Heavy Industries established Marine Machinery and Engine Co., Ltd. in 2013 to deal with marine machinery and engines. Since its inception, the company has specialized in the development, design, licensing and sales of marine engines and mechanical products.
Mitsubishi Heavy Industries' UE series engines cover a wide range of power from approximately 1.665 MW to 35.5 MW. These two-stroke low-speed engines are widely used in bulk carriers, tankers and chemical tankers, truck and truck carriers, container ships, LPG. And multi-purpose transport vessels and other ship types.
It is understood that the specific terms of the tripartite cooperation are expected to reach a consensus at the end of December this year, a final agreement will be reached in early February 2017, and integration will be completed in April 2017.