JFE Holdings and IHI Discuss Management Integration of Shipbuilding Business

JFE Holdings and IHI Corporation announced on Tuesday they start to discuss management integration of Universal Shipbuilding Corporation, JFE Holdings Group Company and IHI Marine United, IHI Group Company. They judged to need the enhancement of business base by management integration against international tough competition. Universal Shipbuilding is second shipbuilder in Japan. IHI Marine United is seventh. Consolidated company would become first. JFE Steel, steel maker of JFE Holdings Group, increases supply volume of steel plate to shipbuilders. Shipbuilders are continuing high level of output due to strong demand in the world. South Korean and Chinese shipbuilders are expanding acceptance of order. They are building up shipbuilding capacity. JFE Holdings and IHI will rebuild most suitable shipbuilding system, increase the investment and readjust composition of ship type. Universal Shipbuilding’s shipbuilding volume was 2.017 million gross tonnes in 2007. IHI Marine United’s shipbuilding volume was 851,000 gross tonnes. Both companies’ total volume is higher than Imabari Shipbuilding, Japanese biggest shipbuilder, of 2.276 million gross tonnes.