Mitsubishi and Kobe Diesel plan marine diesel integration

The companies, which have worked together since before 1957 – when they concluded a technology tie-up making Kobe Diesel an exclusive manufacturer of UE engines – said the deal will “establish a highly resilient and flexible business operating system which will be indispensable for the sustained growth of the UE engine business”.

In a statement the companies said: “The forthcoming business integration will bring together MHI’s long-standing advanced technical support, the high value-added business model of MHI Marine Machinery & Engine Co (MHI-MME) as a licenser, and the low-cost business model of Kobe Diesel. The three signatories will work towards becoming a global licenser and marine diesel engine provider capable of performing all aspects of development and design, including manufacture, marketing and servicing.”

Under the basic agreement between MHI, MHI-MME and Kobe Diesel, the parties will seek to reach agreement on the terms of the integration by late December, with a final agreement by early February. They aim to complete the integration by April, after all necessary approvals have been acquired from authorities.

Kobe Diesel has produced and sold more than 2,000 Mitsubishi UE engines since 1957.