Japan's Mitsubishi Heavy asks other companies to take on idle workers - sources
27/10/2020 23:34
By Maki Shiraki
TOKYO, Oct 28 (Reuters) - Mitsubishi Heavy Industries
7011.T (MHI) said it has asked several other companies to
temporarily employ idle workers from its factories in central
Japan in a bid to cut costs and weather a downturn from the
COVID-19 pandemic, two sources told Reuters.
MHI has approached firms in Aichi Prefecture including
Toyota Motor Corp-affiliated parts maker Toyoda Gosei 7282.T ,
about transferring dozens of workers for up to three years from
January, the sources with knowledge of the plan said.
They asked not to be identified because they are not
authorised to speak to the media.
"We are adjusting workforce levels through secondments, but
we don't disclose the details," a spokesmen for MHI said. A
Toyoda Gosei spokesman said he was unable to immediately
comment.
Japan's biggest heavy machinery maker will on Friday release
results for the three months ended Sept 30, after posting a 71.3
billion yen ($680 million) operating loss in the first quarter.
Local media reports and sources say MHI may also announce a
new business plan that will include freezing development of its
SpaceJet regional jet as airlines, including launch customer ANA
Holdings 9202.T , rein in costs to cope with a collapse in air
travel.
Encouraged by the Japanese government, MHI started the
SpaceJet programme in a bid to become a global commercial plane
maker. Technical problems, however, forced it to delay its first
delivery to ANA six times from 2013 to the end of March 2022.
MHI is also a key aircraft parts supplier to commercial
aircraft builders Boeing Co BA.N and Airbus SE AIR.PA ,
which have also been hurt as airlines struggle to survive.
ANA, Japan's biggest carrier, on Tuesday said it plans to
send more than 400 people to work elsewhere after it forecast an
operating loss of 505 billion yen in the year to March 31.
($1 = 104.7900 yen)
(Reporting by Maki Shiraki; writing by Eimi Yamamitsu and Tim
Kelly; Editing by Lincoln Feast.)
((tim.kelly@thomsonreuters.com; +81-3-4563-2738))