Consolidation of Handy-size Bulker Business
January 11, 2002
We are pleased to announce that it was decided at the board meeting today that NYK will consolidate its handy-size bulker business and that of Toho Shipping Co., Ltd. with effective on October 1st, 2002. Toho Shipping, founded in 1988, became NYK's fully owned subsidiary in the end of December 2001.
Mr. Saburo Kawahara, currently NYK's managing director and Toho's director, is assumed to be president at the new company. Also, Mr. Hisayoshi Mikawa, currently Toho's president, will be nominated as executive vice president of the company. Name of the company will be announced shortly.
Currently, NYK operate over 100 handy-size bulkers, carrying such cargoes as steel, ore, copper concentrates, salt, grain, fertilizer, log and lumber. Toho Shipping mainly carries log and lumber with its handy-size bulkers.
Operating about 120 handy-size bulkers and annually earning 55 Billion Yen (US$420 Million), the new company will become one of the world's biggest handy-size bulker operators. As fruit from the consolidation, we expect to further improve the fleet operation and enhance our serviceability to customers' diverse needs. In addition, the new company will be one of the most efficient handy-size bulker operators, since it will operate with approximately 35 employees only. The anticipated cost saving will be 1 Billion Yen (US$7.7 Million) per year.