Kawasaki to Acquire Shares in MES Yura
Dec. 25, 2014
Tokyo, December 25, 2014 — Kawasaki Heavy Industries, Ltd. announced today its decision to acquire a 40% share in MES Yura Inc., a wholly-owned subsidiary of Mitsui Engineering & Shipbuilding Co., Ltd. (MES), as of April 1, 2015. Today, Kawasaki and MES sealed the deal with the signing of a share transfer agreement and a joint venture agreement. With this transaction, MES Yura will be brought under the joint ownership and operation of MES and Kawasaki, and the company name will be changed to MES-KHI Yura Dock Co., Ltd. as of the date stated above.
The ship repair industry in Japan has been subjected to fierce competition from repair shipyards in foreign countries like Singapore. However, once Japanese ship operators start transporting shale gas from North America, more LNG Carriers are expected to undergo maintenance work in domestic yards. By participating in the management of MES Yura, one of the largest ship repair yards in Japan, Kawasaki aims to acquire the resources and infrastructure to provide its customers with total lifecycle support for LNG Carriers, and to boost its ship repair operations. Drawing on its considerable know-how and experience in periodic inspections and repair work of LNG Carriers, Kawasaki will leverage its resources and sales channels to help make MES Yura more competitive and profitable jointly with MES. Kawasaki will continue to provide periodic inspections and annual maintenance work of submarines and government-owned ships at the Kobe Works.
| Overview of the joint venture company | |
|---|---|
| Name: | MES-KHI Yura Dock Co., Ltd. |
| Location: | 193-13 Ajiro, Yura-cho, Hidaka-gun, Wakayama |
| Foundation: | April 1, 2015 |
| Capital: | JPY 200 million |
| Ownership: | MES 60%, Kawasaki 40% |
| Operations: | Fabrication, modification, repair, and dismantling of ships, offshore platforms, and other maritime structures |
| Employees: | 180 |
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