Mitsubishi Heavy considers spinning off shipbuilding operations

Incurring losses: Workers are seen at the assembly line of Mitsubishi Heavy’s plant in Sagamihara. The company booked combined losses of 238 billion yen (US2.1bil) in its cruise-ship construction business in the last three fiscal years ended March 31. — Reuters

TOKYO: Mitsubishi Heavy Industries Ltd is considering spinning off its shipbuilding business and planning local partnerships as weak demand for vessels prompts companies in the industry to reorganise their operations.

A decision on a new structure for the shipbuilding operation may be announced in July, Eiji Matsubara, a spokesman for Mitsubishi Heavy, said by telephone from Tokyo. Nikkei reported the plan earlier yesterday.