Mitsui E&S withdrawing from thermal power civil engineering after Indonesian losses
TOKYO, NNA - Mitsui E&S Holdings Co., a leading shipbuilding and engineering firm, will stop accepting new orders for thermal power plant civil engineering, eventually withdrawing from that sector under its latest restructuring plan.
The decision came after the company reported a record net loss of 69.5 billion yen ($633.2 million) for the year to March 2019 emanating from its engineering division.
The division incurred losses associated with undersea pipes it installed to handle drainage at an Indonesian thermal power plant. The pipes were found to be too weak.
“We found it necessary to withdraw from unprofitable operations and nurture growth areas,” the company said in a statement Friday.
It said it would focus on engineering for chemical plants and renewable energy.
Mitsui also said it would scale down its commercial shipbuilding operations to focus more on energy and large steel structure engineering.
It said it would consider selling assets and reducing fixed costs. A company official said there was no plan to reduce the workforce.