Universal Shipbuilding’s president Shinjiro Mishima said to a reporter of Japan Metal Bulletin the combined firm with IHI Marine United tries to improve the competitiveness especially in new commercial ship market. He expects the new company can utilize best practice from the both company for better competitiveness.
Mr. Mishima said the firm talks with integration process toward October 1. The new company seeks growth strategy through the synergy between Universal Shipbuilding with strength in taker and bulker and IHI Marine United with strength in container carrier. Mr. Mishima said IHI Marine United’s Kure plant has excellent production management system while IHI Marine United’s Yokohama plant has high technology advantage. He said the utilization of such best practices could improve the strength of the new company along with optimization of production network. Mr Mishima said Universal Shipbuilding can clear targeted 26 units of new order receipt in fiscal 2011 ending March 2012 despite of the severe conditions including historical high yen rate and lower ship price. He said the good sales are partly due to better technology when the half of the new orders represents G-series, which realized 25% lower emission of greenhouse gas. He expects the firm can clear targeted 12.5 billion yen of recurring profit for fiscal 2011. Mr. Mishima said the ship order condition will be severe under severe maritime market due to new ship supply in 2011 despite of the higher ocean freight demand. He said the firm tries to serve economically reasonable owners with long term demand. Mr. Mishima said the completion ships will be 26 units and 2.1 million gross ton in fiscal 2011 compared with 28 units and 2.1 million gross ton in fiscal 2010. He said the firm and new company try to survive for 2, 3 years while the firm has 65 units of order backlog when the new ship market would be severe at least through 2015. Mr. Mishima said the firm opened Dalian office in July 2011 in order to check availability of offshore materials in price and quality. He said the firm tries to improve the competitiveness in the materials to match rivals in China and South Korea. He also said the firm expects Japanese steel makers could offer competitive steel products. Mr. Mishima said the firm halves the capital expenditure in fiscal 2012 from 7 billion yen in fiscal 2011. He emphasized the firm keeps annual 2 billion yen of research and development investment focusing on energy saving technology.