MOL announces dry bulk business integration plans

Outline of the reorganisation

Mitsui O.S.K. Kinkai, Ltd. (a 100% owned subsidiary of MOL) and MOL’s small and medium-sized bulker business, wood chip carrier business, and Panamax business, excluding services for steel manufacturers and domestic electric power companies, will be integrated.

Purpose of the reorganisation

The business environment surrounding the shipping industry is changing at an extremely rapid pace, with factors such as the changes in the world’s political and economic trends, structural changes in energy demand, diversification of customer transportation needs, abnormal weather and the COVID-19 pandemic, all having a significant impact.

To tackle these changes, on 22 June 2020, in its management plan ‘Rolling Plan 2020’, MOL announced its intention to “enhance the organisational strength by mobilising resources of all of the group companies”, and to “strengthen growth strategies and conduct structural reforms depending on the business characteristics" in order to achieve MOL’s 10-year vision to "become a group of business units with number one competitiveness in respective areas.”

In line with these strategies, MOL and MOL Kinkai have recently decided on a policy of integrating their businesses and establishing a new company, with MOL Kinkai as the surviving company. The aim being to developing a business entity to respond to the drastically changing business environment and to strengthening customer service.

The new company will be a unique entity with a diverse range of vessel types and sizes, ranging from 10 000 DWT to 100 000 DWT, including: bulk carriers, wood chip carriers, and multipurpose vessels. The dry bulk transportation service that each of the business units have been providing to meet the requirements of their various customers will be improved to a higher level by maximising the synergies from this reorganisation. The new company will enhance environmental initiatives, such as GHG reduction; provide one-stop service to MOL’s customers regardless of the cargo or vessel type; add value by providing a wide range of transportation solutions; and will strive to become a "strong and resilient" dry bulk carrier.

Outline of the new company

In April 2021, the name of MOL Kinkai will be changed, and, in April 2022, the businesses will be transferred to the new company, involving the integration of the organisation and personnel.

Schedule of the Integration

• 11 December 2020: Resolution of the Board of Directors on the Group Reorganisation Policy.
• 1 April 2021: Change the name of MOL Kinkai and start integrated service.
• 1 April 2022: Business transfer to the new company.

Read the article online at: https://www.drybulkmagazine.com/dry-bulk/17122020/mol-announces-dry-bulk-business-integration-plans/