Mitsubishi to Downsize Shipbuilding Operations

Japan's Mitsubishi Heavy Industries is planning to stop taking new orders for large passenger ships, downsizing its shipbuilding operations due to a slump in orders.

News ID: 69597

Date: 17 October 2016 - 16:08

According to MANA, the plans by Japan's fourth-largest shipbuilder come as new shipbuilding orders have declined 80 percent so far this year, the Nikkei said.

Citing unidentified sources, it said the company was considering splitting off its planning and design division and sharing shipyards with other companies.

Mitsubishi Heavy took a 103.9 billion yen ($1.01 billion) loss on its cruise ship construction operations in the year ended March, having delayed the delivery of a cruise ship produced for Carnival Corp by more than a year.

In a presentation on the group's third quarter 2015 financial results in February, president and CEO Shunichi Miyanaga told investors that it was time for transparency on the troubles its shipyard division