MHI and DU form alliance

Mitsubishi Heavy Industries in Japan (MHI) has agreed to form a business alliance in low-speed diesel engines for marine use with Diesel United (DU), a subsidiary of Ishikawajima-Harima Heavy Industries (IHI).

In addition to developing, producing and granting licenses for Mitsubishi-UE diesel engines, which are Japan’s only independently developed low-speed diesel engines, MHI is also engaged in the production of Wärtsilä low-speed diesel engines. DU, on the other hand, is Japan’s largest licensee for Wärtsilä low-speed diesel engines. Both MHI and DU have production centres located in Hyogo Prefecture, and they plan to take full advantage of this by forming a business alliance.

Through this business alliance, both company will achieve the rational utilization of production facilities, and realize the provision of an even better after-sales service for the customers. The alliance will also lead to greater market shares for low-speed diesel engines for marine use manufactured by both companies, and it will bring about more stable business and greater profits.

MHI and DU are already engaged in technological exchange for large Wärtsilä low-speed diesel engines for marine use. In August 2005, MHI formed a strategic business alliance in low-speed diesel engines with Wärtsilä which is currently creating a joint venture for a production centre in Qingdao, China. Through this business alliance in the fields of production and after-sales service MHI will also strive to draw closer to MAN B&W engines which occupy the greatest share in the market for low-speed diesel engines for marine use.