February 14, 2000
Sale of Nissan's Aerospace Division
Tokyo -- Nissan Motor Co., Ltd. today reached agreement on a memorandum of understanding with Ishikawajima-Harima Heavy Industries Co., Ltd. (IHI) for the sale of its aerospace division to IHI. Nissan and IHI will continue to finalize the details of the transaction which is expected to be closed before August.
As the automotive and aerospace industries require an increasingly global focus, the deal will allow both companies to concentrate their technological and engineering resources on their core businesses.
Nissan’s Aerospace Division started research on rockets in 1953. As an integrated rocket development and manufacturing division, the unit has contributed to the development in the area of solid propellant rockets for scientific sounding rockets and practical satellites. The division reported net revenue of 51.2 billion yen in FY’98, and has 920 employees.
Nissan has been working to spin off its non-core business lines to focus its resources on core automotive operations as part of the Nissan Revival Plan announced last October. The sale of the aerospace division is one step in Nissan’s restructuring plan that is aimed at achieving growth, improving profitability and reducing its debt.
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