Toyo Engineering, With Mitsui…
On November 28, Toyo Engine announced that it will raise about 15 billion yen by issuing a third-party allotment of shares and issuing preferred stock.“The relationship with Mitsui is not changed at all.” At the press conference, Mr. Masayuki Yoshizawa, Toyo Engineering leader in plant engineering, emphasized. Will hold an extraordinary shareholders’ meeting on February 12, 2019 and resolve to issue preferred stock and reduce capital.
It is not the Mitsui stock of the largest shareholder (22.7%), but the investment fund / integral etc. It takes over the preferred stock. Integral is also known for support to airline company Skymark which failed in January 2015. The funds procured will be utilized to transform Toyo Engine‘s business structure and accelerate the rehabilitation plan.
Toyo stumble in US chemical plant projects, falling to the final deficit of 26.8 billion yen in the fiscal year ended March 2018. In the same project that began construction in 2016, piling is difficult due to ground problems since the beginning of construction. Construction delayed due to the influence of hurricane that struck the site in 2017. From April this year we reviewed the construction system drastically and added two new local construction companies. Toyo Engineering‘s site management staff also increased, thorough progress management. “The appointment of a local contractor with mobilizing power as a subcontractor was successful” said Mr. Yoshizawa. The North American project that gave us an additional cost of about 58.5 billion yen, the exit has come to light at last.