Mitsui OSK Lines (MOL) has unveiled plans to restructure its dry bulk business within the group.
According to the new policy, Mitsui O.S.K. Kinkai, MOL’s 100% owned subsidiary, MOL’s small-and-medium-sized bulker and wood chip carrier businesses will be integrated, along with the Panamax business.
The integration, however, will not include the services for steel manufacturers and domestic electric power corporations.
The company said that the reorganisation has been implemented due to the rapidly changing business environment.
Factors such as the changes in the world’s political and economic developments, structural variations in energy demand, the Covid-19 pandemic said to have impacted the company’s decision.
To face these changes, MOL announced its intention in their Management Plan Rolling Plan 2020 to mobilise resources of all of the group companies for growth and structural reform.
MOL and MOL Kinkai recently decided to integrate their businesses and form a new company with MOL Kinkai as the surviving company.
The new business entity will include a diverse range of ship types and sizes, ranging from 10,000dwt to 100,000dwt, bulk carriers, wood chip carriers and all-purpose vessels.
The new firm will also undertake more environmental initiatives such as GHG reduction, offering a one-stop service to customers, providing a variety of transportation solutions and more.
The name of MOL Kinkai will be changed in April 2021 and the businesses will be moved to the new firm in the following year.