|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.
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
development 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
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 debt.
(Feb. 14, 2000)