MHI considers shipyard spin-off
Japanese multinational giant Mitsubishi Heavy Industries (MHI) is considering spinning off its shipbuilding business and planning local partnerships as weak demand for vessels prompts companies in the industry to revamp their operations, Bloomberg reported. Mitsubishi Heavy also hinted at a capital tie-up with three Japanese firms -- Namura Shipbuilding Co. as well as closely held Imabari Shipbuilding Co. and Oshima Shipbuilding Company last year. A report in Nikkei quoted spokesman for Mitsubishi Heavy Eiji Matsubara saying that a decision on a new structure for the shipbuilding operation may be announced in July. MHI booked combined losses of $2.1 billion in its cruise-ship construction business in the last three fiscal years ended March 31. MHI and Kawasaki Heavy Industries are among Japanese shipbuilders reviewing their business amid reduced and delayed orders, while peers in other countries sell assets, cut capacity and jobs, reported Bloomberg.