Basic Agreement Reached With Oshima Shipbuilding Co. to Form Commercial Shipbuilding Alliance

Move will Strengthen Global Competitiveness in Shipbuilding

Tokyo, July 14, 2016

Mitsubishi Heavy Industries, Ltd. (MHI) has reached a basic agreement with Oshima Shipbuilding Co., Ltd. towards the formation of an alliance in the commercial ship business. The companies will seek business synergy and target sustainable growth in order to strengthen business competitiveness in the global market, while also respecting mutual independence.

The agreement with Oshima Shipbuilding will utilize the expertise of both companies, establishing a technical alliance to focus on development of new ship designs and technologies, standardization of design and construction, and efficient shared use of tools and equipment. The alliance follows on from a previous agreement reached at the end of March with Imabari Shipbuilding Co., Ltd. and Namura Shipbuilding Co., Ltd. Contracts for specific projects will be decided on an individual basis.

The new alliance will allow MHI to enhance competitiveness in shipbuilding, focusing on core engineering capabilities and expertise, while ensuring that Japan strengthens its shipbuilding capabilities in the face of a rapidly changing global industry.

Mitsubishi Heavy Industries, Ltd. press release