Ishikawajima-Harima Heavy Industries Co. said Wednesday it and the governmental Development Bank of Japan will jointly set up two companies to take over failed Niigata Engineering Co.’s mainstay operations.

The new firms, Niigata Power Systems Co. and Niigata Transys Co., will be formed Feb. 3 and each owned 70 percent by IHI and 30 percent by the DBJ, according to the heavy machinery maker.

Niigata Power Systems will take over the failed firm’s engine and turbine business, while Niigata Transys will take over its railroad interests.

Niigata Engineering filed for court protection from creditors in November 2001 with liabilities of more than 220 billion yen.

Late last year, Niigata Engineering obtained approval from the Tokyo District Court for a restructuring plan centering on the sale of its mainstay engine and turbine division to IHI.

The DBJ later became involved in the deal and agreed to take a stake in the planned two new firms.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.