Mitsui O S K Lines : 2024/06/25 MOL Announces Consolidation of Equity-Method Affiliate Company Gearbulk

June 25, 2024

TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto) today announced that it has decided to undertake a business reorganization of its equity-method affiliate company, Gearbulk Holding AG (Gearbulk; President: Kristian Jebsen; Headquarters: Switzerland Note , and acquire a 72% stake in the company, making it a consolidated subsidiary company, by around January 2025.

* For details, please refer to the following timely disclosure.
URL: https://ir.mol.co.jp/en/ir/ir_news/ir_news-119157321128353984/main/0/link/2024.0625_TSE(E).pdf

Gearbulk is the world's leading player in the open-hatch vessel segment, controlling a fleet of 60 vessels. It has a track record of growth by transporting various semi-finished products such as pulp and steel products, as well as small-lot and project cargo, and boasts high transportation and cargo handling know-how and ship management quality. By adding Gearbulk's open-hatch segment business to MOL business, we will be able to offer a diverse range of transport services by a broad range of vessel types.

The consolidation of Gearbulk creates synergies such as enhancing the expansion of the group's business base by adding Gearbulk's worldwide network, creating new business opportunities, and boosting the efficiency of vessel allocation. The company also expects these synergies to significantly differentiate it from its competitors and strengthen its cost competitiveness and customer network.

Open-hatch vessels have box-shaped cargo holds and wide hatches, allowing them to efficiently load, transport, and unload semi-finished products such as pulp, forestry products, steel products, and aluminum ingots. These vessels are also specially designed so that the cargo can be loaded on top of the hatch or deck, allowing the transport of heavyweight and oversized cargo such as windmill components.

By consolidating and strengthening the group's management resources, MOL is committed to accelerating revenue growth while striving to sustainably enhance its corporate value.

(Note)
Gearbulk Holding AG
Headquarters: Switzerland
Establishment: March 1991
Business: Shipowner and ship manager of open-hatch vessels; (Currently a 49% equity-method affiliate company of MOL)
Current Shareholders: MOL49%, Halberton Holding Ltd. (investment company of Kristian Jebsen) 51%

[Open-hatch vessels]
Left: Open-hatch jib crane vessel, Right: Open-hatch gantry crane vessel

[Difference in cargo hold shape]
Left: Open-hatch vessel; Right: Conventional bulker[Examples of open-hatch vessel' cargoes]
From left: Bale pulp, steel products, aluminum ingots, windmill towers