IHI (TYO:7013) will transfer full ownership of rolling stock subsidiary Niigata Transys to JKF, a company backed by a fund managed by J-Will Partners, according to a Wednesday filing on the Tokyo Stock Exchange.
Niigata Transys, which leads Japan's market for railway maintenance and snow removal vehicles, is being divested to support its overseas expansion and product development capabilities. The transfer is scheduled for completion on Dec. 30.
IHI said it selected J-Will Partners as a strategic partner based on its experience supporting the growth and business succession of mid-sized firms across Japan.
The transaction aims to boost Niigata Transys's global competitiveness, especially in markets such as the US and China where demand for snowplows and rail vehicles is projected to grow.
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