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Tokyo, December 14, 2006 —Kawasaki Heavy Industries, Ltd. today announced that its two subsidiaries, Kawasaki Plant Systems, Ltd. (K Plant) and Kawasaki Environmental Engineering, Ltd. (KEE), have decided to merge effective April 1, 2007, based on the decisions made at their Board Meetings.
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Objectives of the merger: |
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Kawasaki has decided to nurture its energy and environmental engineering business to create a new earnings driver under its new Medium-Term Business Plan “Global K” issued in September, 2006. Aimed at becoming a global leader in clean energy and environmental engineering with superb, proprietary technology, Kawasaki will implement various measures, including redirection of business and M&A, to develop and expand the business.
The merger of the two companies will accelerate the basic strategy mentioned above. By integrating key technologies both K Plant and KEE have in the energy and environmental related fields, the new company will strengthen product and technological competitiveness and maximize operational efficiency.
Kawasaki will provide management support, including business opportunities, technology and funds, to the new company. At the same time, Kawasaki will implement policies in the “Global K” plan, with the aim of further increasing the collective strength and the value of the Kawasaki Group as a whole.
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Overview of the new company: |
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Date of merger: April 1, 2007
Scheme of merger: Absorption-type merger
KEE, the legal successor corporation, will acquire K Plant.
Name of the new company: Kawasaki Plant Systems, Ltd.
Capital: ¥8.5 billion (100% owned by Kawasaki Heavy Industries, Ltd.)
Representative: Toshikazu Hayashi, President
Projected Sales: Approx. ¥85 billion for the fiscal year ending March 31, 2008
Number of employees: Approx. 910 as of April 1, 2007
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