Kobe Diesel Takes Over MHI Marine Engine Arm

By Jack Burke01 February 2017


Japan’s Mitsubishi Heavy Industries Marine Machinery & Engine Co., Ltd. (MHI-MME), is to transfer it marine diesel engine company to Kobe Diesel, its former licensee. The switch is targeted to take place on April 1.

MHI-MME two-stroke, low-speed UE engines range in power from approximately 1.65 to 35.5 MW and are used in a range of merchant ships including tankers, bulk carriers, pure car and truck carriers and container vessels.

In a statement MHI-MME, a subsidiary of Mitsubishi Heavy Industries, (MHI) said Kobe Diesel will formulate a “concrete integrated business plan that makes use of the strengths of both its high value-added business model as a licensor of MHI-MME and its business model as a low-cost manufacturer, while continuing to receive technical support from MHI for development and production.”

The companies noted that “it is essential for sustainable growth and the development of the UE engine business to improve profitability and competitiveness while flexibly responding to the business environment,” the statement said.

It added: “Both MHI-MME and Kobe Diesel have worked to improve long-term corporate value while complementing each other through their licensor/ licensee relationship. The two companies will now further develop this relationship by vertically integrating their respective businesses as licensor (development, design, after-sale servicing) and licensee (manufacturer, marketing, after sale-servicing).

“In so doing, the companies will create an agile and flexible business management system as a specialized engine manufacturer with end-to-end business processes across the value chain. “

The companies said they plan to build stronger collaborative relationships with UE licensee companies “based on customer patronage, emphasizing the creation of added value. At the same time, the company will foster a sense of unity and will aim to further expand and develop Japan’s world-class marine diesel engines.”

MHI and MHI-MME said they will continue to closely collaborate with Kobe Diesel to support the development of its marine diesel engine business.

MHI-MME was launched on Oct. 1, 2013, taking over MHI’s former operations in marine machinery and engine development, design, sales, after-sale servicing and licensing. MHI-MME also makes a variety of other marine equipment including turbochargers, propellers, marine boilers and turbines, steering gears, fin stabilizers, and deck cranes/deck machinery.

Based in Japan, Kobe Diesel also makes a range of specialist components and has developed an on-site marine crankshaft machining and repair service.

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