Mitsui O.S.K. Lines, Ltd. yesterday announced the policy for the reorganization of the Dry Bulk business within the Group.
1. Outline of the Reorganization
Mitsui O.S.K. Kinkai, Ltd. (the Company’s 100% owned subsidiary; Head Office : Minato-ku, Tokyo; President and CEO : Kenichi Nagata; “MOL Kinkai”) and MOL’s small- and medium- sized bulker business, wood chip carrier business and Panamax business, excluding services for steel manufacturers and domestic electric power companies, will be integrated.
2. Purpose of the Reorganization
The business environment surrounding the shipping industry is changing at an extremely rapid pace, with factors such as the changes in world’s political and economic trends, structural changes in energy demand, diversification of customer transportation needs, abnormal weather and the COVID-19 pandemic, all having a significant impact.
To tackle these changes, on June 22, 2020, in their Management Plan “Rolling Plan 2020”, MOL announced the intention to “Enhance the organizational strength by mobilizing resources of all of the group companies”, and to “Strengthen growth strategies and conduct structural reforms depending on the business characteristics” in order to achieve MOL’s 10year vision to “become a group of Business Units with No.1 competitiveness in respective areas”.
In line with these strategies, MOL and MOL Kinkai have recently decided on a policy of integrating their businesses and establish a new company with MOL Kinkai as the surviving company, with the aim of developing a business entity to respond to the drastically changing business environment and to strengthening customer service.
The new company will be a unique entity with a diverse range of vessel types and sizes, ranging from 10,000 DWT to 100,000 DWT, including bulk carriers, wood chip carriers and multipurpose vessels. The Dry Bulk transportation service that each business units have been providing to meet the requirements of their various customers will be improved to a higher level by maximizing the synergies from this reorganization. The new company will enhance environmental initiatives such as GHG reduction, provide one-stop service to our customers regardless of the cargo or vessel type, add value by providing a wide range of transportation solutions, and will strive to become a “strong and resilient” Dry Bulk carrier.
3. Outline of the new company
In April 2021, the name of MOL Kinkai will be changed (Hereinafter referred to as the “new company”), and in April 2022, the businesses will be transferred to the new company involving integration of the organization and personnel.
4. Schedule of the Integration
December 11, 2020: Resolution of the Board of Directors on the Group Reorganization Policy
April 1, 2021: Change the name of MOL Kinkai, Start integrated service
April 1, 2022: Business transfer to the new company
If any other matters arise that need to be disclosed, we will promptly make an announcement.
Source: Hellenic Shipping