Japan has approved the first wave of shipyard investment plans worth around 600 billion yen ($3.83 billion) over a period of about 10 years, according to Japan’s Ministry of Land, Infrastructure, Transport and Tourism, even though the shipyards are not state-owned.
The three approved projects cover eight Japanese companies and qualify for government support of up to 213.1 billion yen ($1.36 billion) through the Shipbuilding Industry Revitalization Fund.
Allocation of funds
Imabari Shipbuilding, Tadotsu Shipyard and Steel Hub can receive up to 113.8 billion yen ($727 million). Japan Marine United, JMU Amtec and Ariake Steel Center qualify for up to 49.4 billion yen ($315 million), while Namura Shipbuilding and Hakodate Dock can receive up to 49.9 billion yen ($319 million).
The support will run from fiscal year 2026 through fiscal year 2034.
Investment in automation and production capacity
The investments will cover automation, labour-saving technology, production equipment, cranes and other shipyard infrastructure aimed at increasing hull production capacity.
Japan is targeting roughly 1 trillion yen ($6.39 billion) in public and private investment in shipbuilding over the next decade. The fund is designed to provide about 350 billion yen ($2.24 billion) in support over 10 years, subject to progress reviews. The country aims to raise annual shipbuilding capacity from about 9 million gross tons (GT) to 18 million GT by 2035.
The companies involved
Imabari Shipbuilding is a Japanese shipbuilder headquartered in Imabari, Ehime Prefecture, producing container ships, bulk carriers, tankers, car carriers and other commercial vessels; the group has built more than 3,000 ships. Japan Marine United, headquartered in Yokohama, was founded in 2013 and designs and builds commercial ships, naval and patrol vessels, and offshore structures. Namura Shipbuilding, headquartered in Osaka, has a portfolio that includes tankers for crude oil and petroleum products, bulk and ore carriers and LPG carriers, while Hakodate Dock is part of the Namura group.