Mitsubishi Heavy Seeks Cost Cuts at Steel Venture With Siemens
- Japanese firm warns of contraction in steel-making equipment
- Primetals venture set up last year with Siemens holding 49%
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Mitsubishi Heavy Industries Ltd., maker of everything from submarines to nuclear reactors, is seeking to cut costs at its steel-making equipment venture with Germany’s Siemens AG in the face of a contracting market.
Primetals Technologies Ltd., 51 percent-owned by the Japanese company, faces intensifying competition due to a glut of steel on world markets. The venture, formed in January last year by the merger of Mitsubishi Heavy and Siemens’ units, will speed up integration as its reviews overlapping production and engineering sites, said Executive Vice President Kazuaki Kimura.