Japan’s shipping firm Kawasaki Kisen Kaisha (K Line) has received board approval to dispose of its subsidiary company, the owner and operator of heavy lift vessels, SAL Heavy Lift GmbH (SAL).
The subsidiary would be transferred to SALTO Holding GmbH & Co. KG. (SALTO), according to data provided by K Line.
The move comes on the back of a number of difficulties that SAL encountered as the company “struggled after financial crisis in 2008 and profitability of owning asset has been depressed, heavily affected by low-price in energy markets.”
After reviewing its business portfolio in mid-term management plan in 2016, K Line decided “that the best solution should be to transfer the business to SALTO.”
K Line said that it is not estimated that financial loss will be recorded in this fiscal year following the transaction.
Japan’s shipping major entered into an agreement to take 50% shares of SAL in 2007 in order to diversify its business. In 2011, K Line took all the rest of the shares and SAL became a 100% subsidiary company.