This new company will be involved in the manufacturing and after-sales services of marine engines.
The transaction will be carried out by a third-party allotment of shares from the new company.
Hitachi Zosen plans to keep a 65% stake in the new venture.
According to Hitachi Zosen, the new company and Imabari Shipbuilding plan to ‘hold the board of directors to approve the conclusion of the definitive agreement for this transaction at each company during December 2022 and seek to obtain approval’.
Hitachi Zosen and Imabari Shipbuilding believe that this deal will contribute to the stable supply and procurement of marine engines, as well as accelerate sales by strengthening the sales supply network.
The transaction is also expected to help improve profitability due to the funds received for development investment along with the opportunity to use the material procurement capabilities of Imabari Shipbuilding to reduce costs.