MHI Concludes Final Agreement on Transfer of Naval and Governmental Ships Business of Mitsui E&S Shipbuilding

TOKYO, Mar 29, 2021 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI) has reached a final agreement with Mitsui E&S Holdings Co., Ltd. under which MHI will take over the Naval and Governmental Ships business of Mitsui E&S Shipbuilding Co., Ltd. A formal agreement on the transfer has been signed.

Mitsui E&S Shipbuilding, an operating company of Mitsui E&S Holdings, has strengths in the construction and repair of auxiliary ship, such as supply ships and oceanographic survey ships for Japan's Ministry of Defense, as well as governmental ships such as vessel for patrolling local fishing waters. In recent years the company has also been actively developing new technologies incorporated into autonomous underwater vehicles (AUV) and autonomous surface vehicles (ASV).

MHI undertakes comprehensive operations in diverse systems and equipment for land, sea and air defense, and applying its technological synergies it develops, designs and constructs cutting-edge naval vessels that provide superior operational features and deliver outstanding performance and cost performance. The company also offers full maintenance and repair services for naval vessels. In recent years the company has also focused on development of new frigates and destroyers beyond traditional parameters, addressing expanding customer demands in areas such as energy savings, unmanned operation, cybersecurity, and reduced lifecycle costs.

Under the newly signed agreement, MHI will take over the entirety of Mitsui E&S Shipbuilding's operations in Naval and Governmental Ships, including AUVs and ASVs. MHI will function as an operating company, with operation of the latter's Tamano Works to continue.

Mitsui E&S Shipbuilding's products and technologies fully complement those of MHI. MHI, by taking over both Mitsui E&S Shipbuilding's technologies accumulated over many years and its outstanding human resources, will be in a solid position to further strengthen the operations of its Naval Ship & Maritime Systems Division. This enhanced strength will contribute to greater ocean security and also boost MHI's corporate value. The company will also actively engage in a broad range of dual-use areas, including cybersecurity products and unmanned systems, helping to realize safe and secure lives for everyone.

Following the requisite reviews by the Fair Trade Commission and other pertinent authorities, the transfer of operations is targeted for completion in October 2021.

Source: Mitsubishi Heavy Industries, Ltd.

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