Japanese postpone yard merger

The Japanese shipbuilders JFE Holdings Inc. and IHI Corp. have decided to postpone a merger of shipbuilding operations until after autumn, according to local sources. The merger, which was to take place this month, has been delayed because of a decline in demand for new ships. In mid-January 2008 it was announced that IHI Corp, Japan’s third biggest heavy-machinery maker, was in talks with JFE Holdings, the nation’s second-biggest steelmaker, to create the largest Japanese shipbuilder to compete against Asian rivals.

The two units could be merged as early as this year creating a company with sales of „345bn. IHI Marine United would be merged into Universal Shipbuilding, which JFE is currently seeking to raise its stake in from 50% to 80% by buying out part of Hitachi Zosen’s 50% share.