Mitsui Engineering and Tsuneishi to form tie-up for shipbuilding
Japan's Mitsui Engineering & Shipbuilding and Tsuneishi Shipbuilding have agreed to commence deliberations on a business cooperation for the construction commercial ships. The purpose of the Cooperation is to attain continuous growth of the shipbuilding business through collaboration between the two companies in building up design and development capacity and cost competitiveness and in obtaining more orders while maintaining their respective independence in management. Mitsui and Tsuneishi will be making discussions in order to attain an agreement on specific conditions for the Cooperation. The business alliance is the latest in a string of Japanese shipbuilders to form similar partnerships in attempts to better compete with yards in China and South Korea, as Japan's shipbuilders continue to struggle against an industry downturn. Nikkei reported that by expanding the scale of their operations, the two Japanese shipbuilders hope to better compete with China and South Korean manufacturers, which between them hold 70% of the global market. Mitsui Engineering & Shipbuilding is a heavy industry manufacturer of the Mitsui Group, which has competitive strength in the fields of ship engines and shipbuilding. Tsuneishi Shipbuilding is the anchor company of the Tsuneishi Group, which mainly engages in shipbuilding and maritime transport. MES has close relations with Tsuneishi, providing it with technology for the design of merchant ships.