Mitsubishi Heavy Industries consolidates position in Japanese military ship building, says GlobalData
Following the news that Mitsubishi Heavy Industries (MHI) has agreed to acquire Mitsui E&S Shipbuilding Co’s naval and governmental ships business;
Mathew George, Ph.D, Analyst, Aerospace, Defense and Security at GlobalData, a leading data and analytics company, offers his view:
“According to GlobalData’s latest Global Naval Vessels and Surface Combatants Market report, MHI is the third leading supplier of naval vessels in Asia-Pacific and is expected to hold 5.5% of the region’s market over 2021-2031, without any planned inorganic growth. The Japanese market alone is expected to grow from US$1bn to US$1.2bn during the forecast period.
“Once completed, the deal will allow Mitsubishi to consolidate its position in the Japan and reduce the number of players to a handful. MHI will also benefit from the technological knowhow that Mitsui E&S brings in the autonomous underwater vehicles (AUV) and autonomous surface vehicles (ASV) sectors.
“The deal will help MHI to consolidate its offering to the Japanese Ministry of Defense, in both maintenance and repair services and new offerings with the combined strengths of both companies and secure its position as a leading player in the region.”