At a meeting of its Board of Directors convened today, Mitsubishi Heavy Industries, Ltd. (MHI) formally approved an absorption-type company split agreement under which, as the company announced on May 30, its marine machinery and marine engine business will be split off and succeeded by MHI Diesel Service Engineering Co., Ltd. (MHI – DSE), a wholly owned MHI subsidiary.
As MHI explained, the split is motivated by rapid expansion of marine machinery and engine market and contraction caused by growth in demand from China and emerging economies, followed by a sharp decline due to the effects of the global financial crisis in 2008.
To respond to these severe market fluctuations, MHI implemented a variety of measures such as the launch of Project which focused on energy savings and environmental responsiveness and increased globalization through alliances with overseas companies.
“Effective October 1, 2013 the company’s operations in marine machinery and marine engines will be transferred, under a simple absorption-type company split arrangement, to its wholly owned subsidiary MHI – DSE “, MHI said in a release.
[mappress] Press release, July 31, 2013