Mitsubishi Heavy Industries - $35.97bn

The top five shipping companies globally are all based in Asia, with headquarters in South Korea, China and Japan, a clear indicator of where the winds of global shipping currently blow from. Ship-technology.com lists the world’s biggest shipbuilding companies based on 2015 revenues.


MHI

Headquartered in Tokyo, Japan, Mitsubishi Heavy Industries (MHI) provides products and services for theaviation, marine, defence, space and energy sectors among others.

The company operates through four divisions: Commercial Aviation and Transportation Systems, Integrated Defense and Space Systems, Machinery, Equipment and Infrastructure, and Energy and Environment.

The first division develops light rail transit networks, commercial vessels and civilian aircraft. Its sub-divisions include: Shipbuilding and Ocean Development, Land transportation Systems, Commercial Airplanes, 787, Commercial Aero Engines Department, and Mitsubishi Aircraft Jet (MRJ).

The Shipbuilding and Ocean Development unit manufactures, installs, sells and services LNG and LPG carriers, and different types of ships (passenger, cruise commercial, special purpose). It also supplies marine equipment and engines, marine structures and various automated systems, and provides engineering services for shipbuilders.

MHI's three major shipyards are the Nagasaki Shipyard and Machinery Works Isahaya Plant, Nagasaki Shipyard and Machinery Works Saiwaimachi Plant, and the Nagasaki Shipyard and Machinery Works Koyagi Plant.

The Energy and Environment division operates through the following sub-divisions: Nuclear Energy Systems, Chemical Plant and Infrastructure, Marine Machinery and Engine, Renewable Energy Business and Power Systems.

The Marine Machinery and Engine department manufactures and supplies marine engines, MET turbochargers, propellers, boilers, turbines, fin stabilisers, pumps and steering gears.

The Integrated Defence and Space Systems division provides integrated land, sea, air and space defence systems such as warships, military aircraft, rockets and special vehicles. Its sub-divisions include Aircraft, Guidance and Propulsion, Space Systems, Special Vehicle, Naval Ship and Maritime, and Space Systems Department.

The Naval Ship unit specifically designs and manufactures destroyers and other types of ships and submarines for the Japan Maritime Self-Defence Force.

The Machinery, Equipment and Infrastructure division is involved with advanced technologies. Its sub-divisions include Engine, Automotive Parts, Air-conditioning and Refrigeration, Machine Tools, Hydraulics and Machinery, and Other Businesses.

"The company generated sales of $35.97bn during the fiscal year ended March 2016."

Financial Performance

The company generated sales of $35.97bn during the fiscal year ended March 2016, an increase of 1.4% compared to the previous year. The company's operating margin decreased to 3.7% during the fiscal year 2016 versus 5.4% in 2015. Its net margin also dropped to 1.6% during the fiscal year 2016 compared to 2.8% in 2015.

Key Competitors

MHI's key competitors include Hitachi, Fuji Heavy Industries, Kawasaki Heavy Industries, IHI Corporation, Sasebo Heavy Industries, Sakai Heavy Industries, Omron ASO, and Actuant Corporation.

Latest Developments

MHI launched its proprietary HydrocurrentTM Organic Rankine Cycle (ORC) Module 125EJW waste heat recovery system onboard Maersk Line's Arnold Maersk vessel in April 2016.

Mitsubishi Heavy Industries Shipbuilding, a subsidiary of MHI, was awarded a contract to build a large liquefied petroleum gas (LPG) carrier by Astomos Energy Corporation in November 2015.

In October 2015 MHI launched two new wholly-owned subsidiaries, Mitsubishi Heavy Industries Shipbuilding and Mitsubishi Heavy Industries Hull Production.

In May 2015 MI LNG Company, a joint venture between MHI and Imabari Shipbuilding, was contracted to build two SayaringoSTaGE next-generation LNG carriers by Nippon Yusen Kabushiki Kaisha (NYK Line).