Mitsubishi Heavy Industries, a Japanese multinational engineering, electrical equipment, and electronics company, is considering spinning off its  shipbuilding business and planning local partnerships as weak demand for vessels prompts companies in the industry to revamp their operations, said a report.

The Tokyo-based company said it booked combined losses of 238 billion yen ($2.1 billion) in its cruise-ship construction business in the last three fiscal years ended March 31.

Mitsubishi Heavy and Kawasaki Heavy Industries are among Japanese shipbuilders reviewing their business amid reduced and delayed orders, while peers in other countries sell assets, cut capacity and jobs, reported Bloomberg.

In October, Mitsubishi Heavy, also a maker of power plants and aircraft, said it will limit production of cruise ships to small- and mid-sized ones, after the first of two vessels ordered for Aida Cruises in 2011 was finally delivered last year following multiple delays.

Mitsubishi Heavy also hinted at a capital tie-up with three Japanese firms -- Namura Shipbuilding Co. as well as closely held Imabari Shipbuilding Co. and Oshima Shipbuilding Company last year.

A decision on a new structure for the shipbuilding operation is likely to be announced in July, it stated.