Mitsui, Tsuneishi Forge Their Cooperation Deal

Japanese shipbuilders Mitsui E&S Shipbuilding and Tsuneishi Shipbuilding have firmed up their cooperation with a business cooperation agreement signed today.

The agreement builds upon the talks on tying up their businesses launched earlier this year, which have resulted in agreement on specific details of the cooperation.

“The purpose of the partnership agreement is to attain continuous growth of the shipbuilding business through collaboration between the two companies in building up design and development capacity and cost competitiveness, and thereby obtaining more orders, while at the same time maintaining their respective independence in management,” a joint press statement reads.

Under the agreement, the Japanese duo plans to team up on research and development, technical collaboration in design and manufacturing aimed at boosting the duo’s orderbooks by shortening design periods and increasing their product lineups as well as by exchanging technical information pertaining to design and manufacturing.

The two shipbuilders also plan to cooperate on procurement activities through joint utilization of one another’s distribution channels and suppliers as well as share their manufacturing facilities in Japan and overseas so as to bolster their cost competitiveness in manufacturing.

In addition, the cooperation will include personnel exchanges so as to share design, procurement and manufacturing technologies, expertise and know-how.

The two companies also agreed to support each other with regard to seasonal fluctuations in workload and sudden unexpected events through the effective deployment of each another’s human and technological resources.