IHI (TYO:7013) will absorb its wholly owned subsidiary, IHI Segment Corporation, as part of a group reorganization following the transfer of its concrete construction materials business, according to a Tuesday filing on the Tokyo Stock Exchange.

The transaction is set to take effect on April 1. IHI will serve as the surviving company, while IHI Segment will be dissolved. Before completion, IHI plans to waive 3.4 billion yen in short-term loan claims against IHI Segment, with the waiver scheduled for March 31.

IHI Segment was established in July 2025 to manage assets remaining after IHI transferred all shares of IHI Construction Materials to Vertex Corporation.