Japan’s Tsuneishi Shipbuilding Acquires Mitsui E&S Shipbuilding

Japan’s Tsuneishi Shipbuilding has made the decision to acquire all shares of compatriot Mitsui E&S Shipbuilding from ship equipment manufacturer Mitsui E&S, making it a wholly-owned subsidiary.

The transaction was made official on June 30 this year. Going forward, Mitsui E&S Shipbuilding will operate under the name Tsuneishi Solutions Tokyobay. The name change was initially announced four days before the acquisition was wrapped up.

The two maritime industry players agreed on the main terms and conditions regarding this deal all the way back in 2021. At the time, it was revealed that Mitsui E&S Holdings would transfer 49% of the shares of its merchant shipbuilding to the new business, which would be wholly owned by Tsuneishi.

Ever since entering into a capital alliance in October 2021, Tsuneishi Shipbuilding and Tsuneishi Solutions Tokyobay reportedly worked together to leverage the synergism between cost competitiveness and technological expertise.

As explained, in light of this, the decision to proceed with the full acquisition instead was prompted by the need for further integration to “ensure sustainable growth and enhanced competitiveness.”

Tsuneishi Shipbuilding has been a long-time player in Japan’s vessel construction sector, having been founded in 1917. Headquartered in the Hiroshima Prefecture, the company owns manufacturing bases both at home and overseas, namely, in China and the Philippines. Tsuneishi specializes in the building of bulk carriers, container carriers, tankers, and several other ship types.

Among the developments the company has had this year is the launching of what was hailed as Japan’s ‘first’ hydrogen dual-fuel tugboat. Launched in April, the unit is part of The Nippon Foundation’s Zero Emission Ships Project, which was unveiled at the end of March.

In the last stretch of April, Tsuneishi’s base in the Philippines wrapped up the first block loading of a methanol-fueled Kamsarmax bulker. The bulker is expected to hit the water this month. In mid-May, the shipbuilder delivered the “world’s first” methanol dual-fuel Ultramax bulker, Green Future, to be chartered by NYK Bulk & Projects Carriers from Kambara Kisen.

The transaction is not the first one of its type recently. To be specific, on June 27, Imabari Shipbuilding, one of the largest vessel construction companies in Japan, bought a portion of the shares of Japan Marine United Corporation (JMU) from compatriot IHI Corporation and JFE Steel Corporation. With the acquisition finalized, Imabari now has a 60% stake in JMU.

The partners had elaborated that the move was made to ‘bolster’ shipbuilding efforts and capacity in Japan, the world’s third biggest nation in this sector, particularly at highly uncertain times.