Nissan Motor Co. and Ishikawajima-Harima Heavy Industries Co. said Monday they have formally agreed on the sale of Nissan’s aerospace division to the heavy machinery maker on July 1.
All operations of the division — operation rights, assets and about 860 employees — will be transferred to a wholly owned subsidiary of IHI, to be set up by that day, the companies said.
They did not disclose the amount of the sale, but industry sources estimated it at 40 billion yen.
Nissan said the division posted sales of 51.2 billion yen in fiscal 1998. IHI’s aerospace division had sales of 192.4 billion yen in fiscal 1998.
Nissan said that the sale is part of its “Revival Plan,” announced in October, under which it plans to sell its noncore businesses in order to concentrate its resources on core automotive operations.
In a separate statement, IHI said it agreed to buy the division because its operations are complementary to its own, enabling the company to strengthen its business.