MHI to take over Mitsui E&S's shipbuilding business

Japan’s Mitsubishi Heavy Industries (MHI) has concluded an agreement with Mitsui E&S Holdings to take over the latter’s ‘naval and governmental ships business’, which includes the development and construction of autonomous underwater and autonomous surface vehicles (AUVs and ASVs).

The deal, which was announced on 29 March, is the result of formal negotiations between the two companies that began in June 2020. Both firms said they want to complete the transfer by October after getting approval from regulators.

The acquisition will reduce the number of local shipbuilders making vessels for the Japan Maritime Self-Defense Force (JMSDF) and the Japan Coast Guard (JCG) from four to three, with the other companies being Kawasaki Heavy Industries (KHI) and Japan Marine United Corporation (JMU).

MHI said in a statement that the move will strengthen its defence shipbuilding operations. “Mitsui E&S Shipbuilding, an operating company of Mitsui E&S Holdings, has strengths in the construction and repair of auxiliary ships, such as supply ships and oceanographic survey ships for Japan’s Ministry of Defense, as well as governmental ships such as vessels for patrolling local fishing waters,” it noted.

Japan’s MHI launched Mogami , the second of a planned fleet of 22 3,900 tonne-class multirole frigates for the JMSDF, on 3 March at its Nagasaki Shipyard & Machinery Works. The company announced on 29 March that it has concluded an agreement to acquire the ‘naval and governmental ships business’ of Mitsui E&S. (JMSDF)

MHI’s naval shipbuilding activity is centred around its Nagasaki Shipyard & Machinery Works. The corporation has developed and built submarines and nearly all types of surface combatants for the JMSDF.