In a move that would create Japan's largest shipbuilder, JFE Holdings Inc. and IHI Corp. have entered talks to merge their shipbuilding operations by year's end, sources said Friday.
The two heavy machinery makers envision combining Universal Shipbuilding Corp., JFE's 50-50 joint venture with shipbuilder Hitachi Zosen Corp., and IHI's wholly owned arm IHI Marine United Inc., they said.
If the deal is realized, it would create a maker with an annual output capacity of 3 million tons, larger than that of the current top shipbuilder, Imabari Shipbuilding Co., based in Imabari, Ehime Prefecture, they said.