Japanese shipbuilding merger goes ahead

A merger of Japanese shipbuilders that has been long in the works looks set to finally become reality. According to agency reports, steelmaker JFE and industrial giant IHI have issued a stock market announcement that says that JFE’s Universal Shipbuilding Corp. and IHI’s Marine United Inc. will be merged effective October 1.

Universal President Shinjiro Mishima will be president of the merged entity and there are no plans for shipyard closures  or labor cuts.

JFE and IHI will each hold 45.93 percent of the merged entity, with Hitachi Zosen taking 8.15 percent.

JFE’s Universal Shipbuilding was created in 2002 when NKK, now a part of JFE, and Hitachi Zosen merged their shipbuilding operations.

January 30, 2011