Chiyoda, Ebara to tie up

Chiyoda, Ebara to tie up

TOKYO (AFX-ASIA): Ebara Corp and Chiyoda Corp will jointly build incineration, water-processing and other facilities in Southeast Asian and other overseas nations, the Nihon Keizai Shimbun reported, citing sources close to the plan.

The two companies are considering setting up a joint venture for the purpose, it said.

Under the alliance, Chiyoda will take charge of engineering work and buying materials necessary for overseas projects, it said.

Chiyoda is also asking Ebara to purchase about 1 billion yen of new shares to be issued in the year to March 2001, it said.

Ebara currently owns around 0.3 percent stake of Chiyoda.

Under its own restructuring plan, Chiyoda intends to ask financial institutions to forgive some 25 billion yen in debts, as well as capital reduction to restore soundness to its balance sheet, the report said.