Press Information
Tokyo, May 7, 2013 - Mitsubishi Heavy Industries, Ltd. (MHI) and Chengxi Shipyard (Xinrong) Co., Ltd. in China have agreed to collaborate in the ship repair business through installation of ballast water treatment systems (BWTS). The two companies signed the agreement on April 26. For some time MHI has been seeking to expand its engineering business in China, while the Chinese shipyard has sought to strengthen its business by introducing advanced technologies in the field. The aims of the two companies have thus meshed in reaching the collaboration agreement. By combining MHI's advanced technologies accumulated from its abundant experience in ship conversion work, including BWTS installation, and Chengxi Shipyard (Xinrong)'s ability to respond to ship conversion needs and its cost competitiveness, the two companies look to establish an advantageous position in the global market in this field.
Going forward, when an order is received calling for retrofitting of BWTS on multiple ships of the same type, engineers from Chengxi Shipyard (Xinrong) will participate in work on the first ship at MHI's Yokohama plant, in order to acquire the necessary know-how. Subsequent work on the other ships will then be undertaken primarily at the Chinese shipyard. This arrangement will enable work to be performed on more ships in a short period at lower cost.
Chengxi Shipyard Co., Ltd is a subsidiary company of China State Shipbuilding Corporation (CSSC), one of China's two largest state-owned shipbuilding-related groups. Its main office and plant are located in Jiangyin and Jingjiang, Jiangsu Province, along the Yangtze River.
Full implementation of a new convention on ballast water management (BWM) is slated to begin in 2017, at which time both new and existing ships will be required to install a system to purify ballast water prior to its discharge from the ship. Ballast water consists of seawater taken into and discharged from dedicated water tanks to provide stability and adjust a ship's trim as desired. While many ships are expected to be subject to the new regulations, some shipbuilders have announced intent to concentrate exclusively on the construction of new ships and will no longer handle either ship modification or BWTS installations on existing ships, even those they built earlier. Against this backdrop, preparation for the convention's implementation has become a major issue in both the shipbuilding and shipping industries.
MHI has already taken the lead in the business of BWTS installation. In April 2011 the company became the first Japanese shipbuilder to establish a dedicated unit to handle such operations, and in January this year the company's basic design of an easy-to-install freight container-enclosed BWTS - jointly developed with Mitsui O.S.K. Lines, Ltd. (MOL) - received concept approval from Nippon Kaiji Kyokai (ClassNK). In addition, MHI has been aggressively promoting engineering business as a long-term expansion strategy for its shipbuilding and ocean development segment, and also accelerating provision of its technologies to other shipbuilding companies both in Japan and abroad.
MHI views the new collaborative arrangement with Chengxi Shipyard (Xinrong) as a significant step forward in terms of both its BWTS installation business and its engineering operations, and it intends to leverage this development as a springboard to new business opportunities.
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.