Mitsubishi Heavy Industries (TYO:7011) said it signed a deal with Shimonoseki City, Yamaguchi Prefecture, to acquire land for industrial development on the artificial island of Choshu Dejima for future business growth, according to a Friday release.

The South Korea-based company said that its affiliate Mitsubishi Shipbuilding will use the land to expand its shipbuilding capacity, strengthening its medium- to long-term competitiveness and developing a stable supply system.

Mitsubishi Shipbuilding also plans to build a new hull block manufacturing plant to strengthen its production system.