Japan’s Mitsubishi Heavy asks other companies to take on idle workers: sources

In this news, we discuss the Japan’s Mitsubishi Heavy asks other companies to take on idle workers: sources.

TOKYO (Reuters) – Mitsubishi Heavy Industries 7011.T (MHI) said it had asked several other companies to temporarily employ inactive workers from its central Japanese factories in a bid to cut costs and overcome the COVID-19 pandemic slowing, two sources told Reuters.

MHI has contacted companies in Aichi Prefecture, including parts maker Toyoda Gosei 7282.T, affiliated with Toyota Motor Corp, about the transfer of dozens of workers for up to three years from January, said sources familiar with the plan.

They asked not to be identified as they are not authorized to speak to the media.

“We are adjusting manpower levels through secondments, but we are not disclosing details,” said a spokesperson for MHI. A spokesperson for Toyoda Gosei said he was unable to comment immediately.

Japan’s largest heavy machinery maker will release results for the three months ended Sept. 30 on Friday, after posting an operating loss of 71.3 billion yen ($ 680 million) in the first quarter.

According to local media and sources, MHI could also announce a new business plan that will include freezing the development of its regional SpaceJet aircraft, as airlines, including launch customer ANA Holdings 9202.T, will cut costs. to cope with an air transport collapse.

Encouraged by the Japanese government, MHI launched the SpaceJet program with the goal of becoming a global manufacturer of commercial aircraft. However, technical problems forced it to postpone its first delivery to ANA six times from 2013 to the end of March 2022.

MHI is also a key supplier of aircraft parts to commercial aircraft manufacturers Boeing Co BA.N and Airbus SE AIR.PA, which have also suffered as airlines struggle to survive.

ANA, Japan’s largest carrier, on Tuesday announced plans to send more than 400 people to work elsewhere after forecasting an operating loss of 505 billion yen in the year ending March 31.

Reporting by Maki Shiraki; written by Eimi Yamamitsu and Tim Kelly; Edited by Lincoln Feast.

Original © Thomson Reuters

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