Japan’s Mitsubishi Heavy Industries Group is planning to switch the focus of its commercial shipbuilding branch to areas such as gas-powered ships as part of a dramatic reform of its shipbuilding arm.
The option is being pursued on the back of ever more stringent environmental regulations in the field of maritime transport which is likely to spur demand for vessels fuelled by gas as they are more environmentally-friendly.
“In the commercial ship business, we consolidated the business integration and engineering functions in July 2017. We are increasing our ability to build ships primarily involving outfitting work, developing energy-saving ships, and collaborating with other domains to step up initiatives in new fields,” the company said.
“Furthermore, through alliances with other companies we intend to cultivate business in new areas, such as gas-powered ships, that leverage our technological expertise.”
In line with this decision, MHI reached a basic agreement with compatriot Oshima Shipbuilding in June this year to form an alliance in the commercial ship business.
The deal aims at establishing a technical alliance to focus on development of new ship designs and technologies, standardization of design and construction, and efficient shared use of tools and equipment.
The alliance follows on from a previous agreement reached at the end of March with Imabari Shipbuilding and Namura Shipbuilding. Contracts for specific projects will be decided on an individual basis.
Mitsubishi has the necessary expertise in environmental and energy-saving technologies, which is a major advantage when it comes to construction of complex gas-powered ships.
MHI’s Ship & Ocean Division and Mitsubishi Hitachi Power Systems, Ltd. (MHPS) have developed a Large-scale Rectangular Marine Scrubber based on MHPS’s comprehensive flue-gas treatment technologies cultivated through desulfurization systems for thermal power plants.
Nevertheless, the company said that it is aware of the increasingly severe competition in the gas carrier and ferry markets, as the gap between supply and demand for new ships persists.
The move to construction of gas-powered ships follows MHI’s decision to cut production of large passenger ships amid financial losses accrued from the construction of Aida Cruises two ships, AIDAprima and AIDAperla.
“Ultimately, however, we lacked sufficient knowledge and expertise to match the facilities and specifications required for large-scale cruise ships in Western markets. As a result, we struggled with the construction and incurred significant losses,” Shunichi Miyanaga, MHI’s President and CEO said.
World Maritime News Staff