Japan shipbuilders ramping up investment to double output
Baku, October 27, AZERTAC
Japanese shipbuilders are stepping up capital investment in shipyards across the country as part of the government's target of doubling domestic shipbuilding volume, with the overall amount on track to exceed 1 trillion yen, Jiji Press reported.
A total of 900 billion yen in public- and private-sector investments have already been decided, including for the introduction of large cranes and the restoration of a dock damaged by an earthquake.
Shipbuilders are eager to make investments. At some shipyards, output is expected to more than double.
Imabari Shipbuilding Co., Japan's largest shipbuilder, plans to introduce jib cranes capable of lifting heavy loads and robots to increase steel plate-welding capacity at facilities including its Marugame Headquarters in the city of Marugame, Kagawa Prefecture, western Japan, and its Saijo Shipyard in the city of Saijo in neighboring Ehime Prefecture.
The transport ministry has decided to provide 113.8 billion yen in subsidies to the Imabari Shipbuilding group through a fund for revitalizing the shipbuilding industry, the largest allocation from the fund. Total investments in the group are expected to reach around 300 billion yen.
Imabari Shipbuilding said it will continually monitor production volumes as it works to double its output.
Hakodate Dock Co., based in the city of Hakodate in the northernmost prefecture of Hokkaido, is moving to restore its No. 4 dock, which was rendered unusable by a major quake off southwestern Hokkaido in 1993.
It plans to drain the dock to assess its condition before beginning restoration work, with shipbuilding there expected to resume around 2032. If the dock is restored, the company is expected to more than double its annual production of small bulk carriers from about five vessels in 2024.
Together with investments at parent Namura Shipbuilding Co.'s main shipyard in the city of Imari, Saga Prefecture, southwestern Japan, the two companies plan to invest up to about 150 billion yen over the next decade, including 49.9 billion yen in government aid.
Kawasaki Heavy Industries Ltd., set to receive 15.6 billion yen in subsidies from the shipbuilding revitalization fund, plans to advance digitalization at its plant in the Kagawa city of Sakaide, including the introduction of robots equipped with artificial intelligence. President Yasuhiko Hashimoto expressed determination to "transform shipbuilding sites" to address a shortage of workers such as skilled welders.
Oshima Shipbuilding Co. plans to install a crane and upgrade buildings at its Koyagi plant in the southwestern city of Nagasaki, increasing its annual output of bulk carriers to about 10 vessels by around 2031, or 2.5 times the current level.
As Japan's shipbuilding industry has struggled to compete with rivals in China and South Korea, the government has designated it as one of the 17 strategic fields for intensive investment.
Japan aims to boost public- and private-sector investment in the industry to about 1 trillion yen by 2035 and double domestic shipbuilding output to 18 million gross tons from the 2024 level.
However, the cost of production equipment such as cranes continues to rise, raising questions about whether investment plans will proceed as planned.
"We greatly appreciate the government's support, but our cash outflow is substantial," an industry official said. "We need to scrutinize plans carefully."
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