Hitachi Zosen Corp has reached an agreement ...
Hitachi Zosen Corp has reached an agreement to merge its shipbuilding operations with steel maker NKK Corp in October 2002 to form Japan's second largest shipbuilder, according to a company statement. The integration is expected to yield combined sales of Yen 150-bil ($1.28-bil) through cost reductions from economies of scale. The merger will widen the line of ship offerings available to the shipping industry. Presently, Hitachi Zosen specializes in the construction of very large crude carriers which accounts for two-thirds of its business. The Japanese shipbuilders have fallen behind their Korean rivals last year when the Koreans recorded a 58% growth in orders.