Japan's third largest shipyard Mitsubishi Heavy Industries Ltd aims to more than double earnings from its shipbuilding operations next fiscal year, helped by demand for vessels to carry goods to and from China.
Mitsubishi Heavy, which builds ships ranging from liquefied natural gas tankers to container vessels, is seeking to tap demand from shipping lines to carry Chinese imports of raw materials and exports of finished goods to the rest of the world. The company, which gets 9% of sales from the business, will invest JPY 50 billion in the unit by 2010.
Mr Shiro Iijima managing executive officer in charge of shipbuilding said that operating profit at the Tokyo based company's shipbuilding and marine business will climb to about JPY 10 billion (USD 97 million) in the financial year starting April 1, from an estimated JPY 4 billion in 2008.
Mr Iijima said that “We have brightness in our shipbuilding operations at last. We are boosting spending to replace old facilities.''
Mr Iijima said that Mitsubishi Heavy expects its operating profit margin to widen to 5% to 6% in the year ending March 2012, from 2008’s 1.4% estimate.
South Korea ended Japan's 44 year reign as the world's largest shipbuilder in 2000. China overtook Japan as the second largest shipbuilding nation by new orders in 2006 and extended its lead last year, threatening to also surpass Japan by construction.
Mitsubishi Heavy, which builds ships ranging from liquefied natural gas tankers to container vessels, is seeking to tap demand from shipping lines to carry Chinese imports of raw materials and exports of finished goods to the rest of the world. The company, which gets 9% of sales from the business, will invest JPY 50 billion in the unit by 2010.
Mr Shiro Iijima managing executive officer in charge of shipbuilding said that operating profit at the Tokyo based company's shipbuilding and marine business will climb to about JPY 10 billion (USD 97 million) in the financial year starting April 1, from an estimated JPY 4 billion in 2008.
Mr Iijima said that “We have brightness in our shipbuilding operations at last. We are boosting spending to replace old facilities.''
Mr Iijima said that Mitsubishi Heavy expects its operating profit margin to widen to 5% to 6% in the year ending March 2012, from 2008’s 1.4% estimate.
South Korea ended Japan's 44 year reign as the world's largest shipbuilder in 2000. China overtook Japan as the second largest shipbuilding nation by new orders in 2006 and extended its lead last year, threatening to also surpass Japan by construction.