Nippon Yusen Kabushiki Kaisha (NYK Line), Japan's largest shipping line, has decided to dissolve one of its United States subsidiaries, NYK Bulkship (USA) Inc.
The decision came at a board meeting on Thursday to unify the management of its Atlantic tramp shipping business following the opening of a New York branch of NYK Bulkship (Atlantic) N.V. in Europe.
The company said that following necessary U.S. legal clearances the Secaucus, N.J.-based unit will hold an extraordinary shareholders' meeting to adopt a resolution to dissolve itself and will then begin liquidation procedures.
The dissolution of the U.S. subsidiary will have no effect on group profits, NYK Line said. It did not say how many staff the unit employed.
The U.S. company was established in 1988 as a wholly-owned subsidiary of NYK Group Americas Inc. It had revenue of $83.9 million in fiscal 2006.
Also, NYK plans to liquidate three vessel-owning subsidiaries in Panama: Dignity Shipholding, Ruta Shipholding, and Magic Maritima.
The liquidation follows an earlier decision to sell off the units' owned vessels.
In June, NYK said it would liquidate another vessel-owning subsidiary in Panama, Ebisu Maritima.