Andrzej Jeziorski/SINGAPORE
Mitsubishi Heavy Industries (MHI)is in talks with Boeing about broad co-operation in the aerospace field. Ishikawajima-Harima Heavy Industries (IHI) has, meanwhile, confirmed that it will buy Nissan Motors' aerospace division - making it Japan's second largest player behind MHI - as the country's unrationalised defence and aerospace sector seeks to restructure.
Mitsubishi officials say the company and Boeing are discussing joint development of satellites and launchers, commercial aircraft programmes and aircraft maintenance. MHI has forecast a poor result for the year to the end of March, predicting a ¥142 billion ($1.3 billion) net loss. The company is heavily in debt and sales have been stagnant.
The Boeing move may be designed to stop Airbus gaining greater access to the US-dominated Japanese market, coming as it does just after the announcement of talks about possible MHI participation in the A3XX programme, encouraged by DaimlerChrysler's recent purchase of a 34% stake in Mitsubishi Motors.
Mitsubishi is already a risk-sharing partner in the Boeing 777 and has manufactured parts for the 767 and MD-11, while supplying some Airbus parts.
Aero-engine specialist IHI says its Nissan negotiations are complete, with the sale - for a reported ¥40 billion - due to go ahead on 1 July subject to regulatory and shareholder approval, marking the first such disposal in Japan, where the industry has been propped up by government programmes.
IHI will leapfrog current aerospace number two Kawasaki Heavy Industries (KHI)through the acquisition, but will remain behind MHI. It had sales of ¥192 billion in the year ended March 1999, while the Nissan unit topped ¥51 billion.
The Nissan division produces solid-fuel rocket engines, defence equipment and the M-5 satellite launcher, which suffered a recent launch failure, highlighting quality concerns in the Japanese space industry.
IHI will turn the unit into a wholly owned subsidiary, retaining 860 of its 1,060 employees. The purchase includes the division's Tomioka facility and a research centre at Kawagoe.
Nissan will now focus on its automotive business and attempt to reduce group debt of ¥2.9 trillion, with the help of France's Renault.
<li> Taiwan's Aerospace Industrial Development Corporation has become the first Asian company to join the A3XX programme, becoming its tenth risk-sharing partner with a 1-2% stake. Risk-sharing commitment now totals "around 30%" of total development cost, says Airbus, against a 40% target.
Source: Flight International
