Troubled plant engineering firm Chiyoda Corp. formally announced Wednesday the appointment of a corporate adviser from general trader Mitsubishi Corp., Chiyoda’s top shareholder, as its chairman and chief executive officer.
Chiyoda expects the Mitsubishi adviser, Kazushi Okawa, 62, to lead the company’s turnaround efforts after it suffered a large loss over a liquefied natural gas plant project in the U.S., according to sources with knowledge of the matter.
Before taking on the advisory post in April, Okawa headed Mitsubishi’s infrastructure project and plant engineering departments.
Current Chiyoda President and CEO Masaji Santo is expected to become president and chief operating officer.
Due partly to the loss from the U.S. plant project, Chiyoda has reported a group net loss of ¥215 billion for the year that ended in March.
The company is currently in talks to get financial assistance, including from Mitsubishi.