Dedicated Negotiations Begin Toward Business Collaboration in Bridge Operations

The Japanese market for social infrastructure is currently quite robust. Recovery and restoration are now getting under way on full scale in the regions affected by the Great East Japan Earthquake, and demand is strong to eliminate of gaps in the nation's highway network, for facilities of various kinds in the runup to the 2020 Tokyo Olympic Games, and for construction to improve the country's rapidly aging infrastructure now in place. Against this backdrop, the market relating to bridge structures, which has been lackluster in recent years, is expected to gradually get on a recovery track in the years ahead.

For many years MHI, MBE, MEG and MEC have worked together on projects involving steel structures, etc., and in the process they have built up strong ties of trust and cooperation. All four parties share the belief that in order to achieve sustained growth and development of their bridge operations going forward, it will be necessary for them to accumulate and enhance their technological capabilities further and to boost their profitability through managerial streamlining and efficiency improvements. Based on this common perception, the four companies have decided to undertake discussions on to collaborate in their bridge business operations, including not only technical cooperation but also, down the road, possible capital contributions as well.

The four-way discussions will consider ways to pursue further business expansion in all aspects of bridge operations, including both new constructions and anticipated large-scale repair and renewal projects, based on their track record in steel structures. The four companies will consider how their respective areas of strength can be integrated to achieve synergy merits in terms of technology, marketing and cost competitiveness. Details of the business collaboration are to be worked out with a target date for concluding a final agreement of June 30, 2014.