MHI and Imabari Shipbuilding to Establish JV for Designing and M

MHI and Imabari Shipbuilding to Establish JV for Designing and Marketing LNG
- Move Taken to Accommodate Large-scale Projects as Way of Winning Solid Place
in Expanding International Market - 
Tokyo, Mar 25, 2013 - (JCN Newswire) -  Effective April 1 Mitsubishi Heavy
Industries, Ltd. (MHI) and Imabari Shipbuilding Co., Ltd. of Imabari, Ehime
Prefecture, will jointly establish MI LNG Company, Limited, a company to handle
the design and marketing of LNG (liquefied natural gas) carriers. Through
establishment of the JV, the two companies aim to proactively prepare a
structure capable of responding to large-scale LNG carrier construction
projects, which are expected to increase in tandem with expanding global demand
for LNG. By combining MHI's technology development capabilities and
Imabari Shipbuilding's cost competitiveness, supported further by the
effective management of their respective shipyards, the two companies look to
win a solid place in the growing international LNG carrier market. 
The JV, which will have its head office in Minato-ku, Tokyo, will be
capitalized at 50 million yen. MHI will own 51% of equity and Imabari
Shipbuilding will hold the remaining 49%. Upon receiving an order for an LNG
carrier, the JV will prepare the specifications, etc., and then order ship
construction either to MHI's Nagasaki Shipyard & Machinery Works or to
Imabari Shipbuilding. 
With shipyards of two companies at its disposal, the JV will be able to secure
collective shipbuilding capacity of more than eight LNG carriers per year. This
will enable the JV to take orders for multiple LNG carriers, putting it in a
position to vie against Korean and other large shipbuilders. Regarding LNG
carrier types, besides the conventional Moss type with spherical LNG tanks and
the membrane type, the JV can also offer the "Sayaendo," a
new-generation LNG carrier* developed by MHI as a high value-added vessel
evolved from Moss-type carriers but achieving enhancements in energy savings
and operability. 
MHI is a pioneer in Japan's LNG carrier industry, having engaged in their
development and construction since the 1970's. To date the company has
delivered 42 ships. Imabari Shipbuilding, Japan's largest shipbuilder in
terms of both tonnage and sales revenue, is one of major shipbuilding dedicated
companies in Japan that include LNG carriers in its portfolio. 
Last year, in May MHI agreed with Imabari Shipbuilding to collaborate in
container carrier technology, and in July to license manufacture and marketing
rights of deck machinery. In October, the two companies jointly received an
order for two highly energy-efficient, next-generation pure car and truck
carriers from Nippon Yusen Kabushiki Kaisha (NYK Line). This increasingly close
relationship between MHI and Imabari Shipbuilding resulted in the latest
collaboration agreement. 
Owing to the suspended operation of nuclear power plants in Japan in the wake
of the Great East Japan Earthquake, demand for LNG as a fuel for power
generation has been expanding not only in Japan but globally. In addition, as a
direct outgrowth of the "shale gas revolution" in the U.S., the share
of North American LNG in the global market is expected to increase, resulting
in a trend toward longer transport distances. With volume growing and transport
distances lengthening, the number of LNG carriers required is expected to
increase. As a result, in order for industry players to attract orders, their
shipyards must be structurally prepared to accommodate construction of multiple
carriers within in a short period. 
Going forward MHI and Imabari Shipbuilding will explore demand for LNG
carriers widely as they look to gain an edge in this increasingly competitive
Profile of MI LNG Company 
Company name:  MI LNG Company, Limited
Business scope: Businesses related to design and marketing of LNG carriers
Head office: 4-5-1, Shimbashi, Minato-ku, Tokyo
President: Haruhiko Omi
Capital: 50 million yen
Operation launch: April 8, 2013 
*The "Sayaendo" has a peapod-shaped continuous cover over spherical
LNG tanks that is integrated with the ship's hull. This innovative design
enables a more efficient overall ship structure and reductions in ship weight
and size. MHI has now completed the new vessel's development and received
orders for five units. The first ship is currently under construction. 
About Mitsubishi Heavy Industries 
Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one
of the world's leading heavy machinery manufacturers, with consolidated
sales of 2,820.9 billion yen in fiscal 2011, the year ended March 31, 2012.
MHI's diverse lineup of products and services encompasses shipbuilding,
power plants, chemical plants, environmental equipment, steel structures,
industrial and general machinery, aircraft, space rocketry and air-conditioning
systems. For more information, please visit the MHI website at 
Mitsubishi Heavy Industries
Hideo Ikuno
Copyright 2013 JCN Newswire. All rights reserved. 
Provider ID: 00026493
Press spacebar to pause and continue. Press esc to stop.