Japanese engineering giant Hitachi Zosen is to spin off its marine engine manufacturing business into a joint venture company with compatriot Imabari Shipbuilding.

The newly formed company will bring together one of Japan’s leading main engine manufacturers with the country’s largest shipbuilder.

The name of the new company, which will be launched in April next year, has not yet been decided.

It has been agreed under the deal that Imabari will own 35% of the business and Hitachi the remaining 65%.