IHI TO MERGE POWER SYSTEM COMPANIES

The power plant engineering business of IHI Corporation will be transferred to the group’s wholly-owned subsidiary Niigata Power Systems, which will also absorb the organisation’s large engine manufacturer Diesel United.

When the integration takes effect, which is planned to be no later than 1 July this year, Niigata Power Systems will change its trade name to IHI Power Systems, 100%-owned by IHI Corporation. The Niigata brand name will be retained for its established range of products.

IHI’s rationale for the restructure was to unite management resources across the group related to power systems and build seamlessly connected operational systems, so as to sharpen efficiency and competitiveness, and to better address market demands for through-life solutions and the drive for net zero emission performance.

Under current arrangements, IHI Corporation’s power systems interests include aero-derivative gas turbines, turbochargers and other components, while Niigata designs and produces diesel, gas, and dual-fuel engines for marine and landside applications, plus Z-Peller azimuth thrusters and medium-sized gas turbines. Diesel United manufactures large-bore, two-stroke diesel and dual-fuel engines at Aioi under licence from Winterthur Gas & Diesel (WinGD), and also builds four-stroke, medium-speed Pielstick engines as a licensee of MAN Energy Solutions.

The impending organisational change is described by IHI as an absorption-type merger, with IHI Corporation as the “splitting company”, Niigata as the “surviving company”, and Diesel United as the “absorbed company”. The latter will then be dissolved. The pooling of operations in the new, Tokyo-headquartered entity, IHI Power Systems, will not affect existing contracts and agreements with business partners and customers.