Tokyo - January 29, 2021
Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Junichiro Ikeda) today announced that the name of its wholly owned subsidiary Mitsui O.S.K. Kinkai, Ltd. (MOK; President: Kenichi Nagata; Headquarters: Minato-ku, Tokyo) will be changed to "MOL Drybulk Ltd." effective April 1, 2021("New Company").
1. New Company name and integration of the commercial activities
As announced on December 11, 2020, "MOL announces the integration of the Dry Bulk business, Wood Chip Carrier business, and Mitsui O.S.K. Kinkai, Ltd., and the establishment of a new Company," MOK and MOL's small- and medium- sized bulk carrier, wood chip carrier, and Panamax business, excluding services for steel manufacturers and domestic electric power companies, will be integrated("Reorganization"). Prior to Reorganization, scheduled for April 2022, it has been decided that the name of MOK will be changed to "MOL Drybulk Ltd." on April 1, 2021, and that commercial activities in the targeted areas will be integrated by collaboration between the two companies.
2. The Purpose of Integration
In the past, through strategic reform and reorganization, the MOL Group has optimized its cost structure and significantly reduced its market exposure in the dry bulk business. As the next step this integration will further improve its competitiveness in the dry bulk business by bringing the strengths together, and increase the value and quality of the service provided to our customers.
3. The Characteristics of the New Company
- MOL Drybulk Ltd.: A team of Professionals -
Dry bulk shall continue to be a core activity of MOL, and the new name represents MOL's commitment to the creation of a strong and resilient organization specialized in this sector. By uniting all of the resources within the group, the New Company will be capable of adapting to the changes in the business environments and act proactively.
- Offering one-stop services with a wide range of fleet of about 200 vessels -
The New Company will be a unique entity operating a wide variety of vessel types ranging from 10,000-100,000 DWT bulk carriers, wood chip carriers, and multi-purpose vessels. Prior to the structural integration in 2022, the "one-stop service" covering all of these vessel types will be available for our customers from April 2021.
- Provide Environmental solutions -
The New Company will leverage MOL Group's technologies, work collaboratively with our customers in order to understand and meet their needs, and provide environmental solutions that reduce the greenhouse gas (GHG) emissions throughout the supply chain.
4. Top Management
Current President of MOK, Kenichi Nagata, will resign as of March 31, 2021.
5. Timeline of Reorganization
December 11, 2020 The policy of the reorganization was resolved at the Board of Directors meeting
April 1, 2021 Name of MOK will be changed, integrating of commercial activities
April 1, 2022 The effective date of Reorganization (plan)
MOL will disclose promptly when it confirms the execution of Reorganization.
Mitsui O.S.K. Lines, Ltd. press release