TSUNEISHI Corporation (head office: 1083 Tsuneishi Numakuma-cho Fukuyama-city Hiroshima, CEO: Katsushige Kambara, hereinafter called TSUNEISHI Corporation) will merge 10 companies, including shipbuilding and shipping companies, in the TSUNEISHI group on January 1st, 2007, seeking a higher corporate value for all group member companies by strengthening competitiveness and profitability. From the date of the merger, the new name of the company will be TSUNEISHI HOLDINGS CORPORATION

The newly merged company, TSUNEISHI HOLDINGS CORPORATION will have three core structures of business: shipbuilding, shipping, and support. TSUNEISHI group companies in each field will belong to the TSUNEISHI HOLDINGS CORPORATION TSUNEISHI HOLDINGS CORPORATION will enhance their focus on shipbuilding and shipping as core businesses by integrating or restructuring redundant practices or departments in each company, improving both customer response capabilities and cost competitiveness.

Additionally TSUNEISHI HOLDINGS CORPORATION will define decision making structures and in-company management systems for its multiply linked groups, establish a management system and so on allowing effective control and supervision by the head office, strengthen financial characteristics and the governance function to strictly oversee compliance management, and enhance information sharing among the group.

As the backdrop for this merger, there is the intensifying competition in the shipbuilding and shipping market, which are the core businesses of TSUNEISHI group. It was concluded that a group merger of the member companies was the best way to survive such competition, allowing introduction of the company system so that prompt and efficient management decisions can be made and effective business management can be applied.

― Note ―

― Company Outline after Group Merger ―

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