Japan Plans To Build All Japan Shipbuilding Against China And South Korea

- Mar 27, 2020-

Japan's two largest shipyards, Jinzhi shipbuilding and JMU, have taken the first step in their cooperation, and will set up a joint venture merchant ship design and sales company this year. As a touchstone, Japan's shipbuilding industry is planning a "all Japan shipbuilding" restructuring plan, integrating 15 major shipbuilding enterprises, and forming a "Big Mac" that can rival the powerful shipbuilding groups of China and South Korea.

Japan's two largest shipyards cooperate in pilot projects, and Jinzhi shipbuilding and JMU set up a joint venture

After reaching an agreement on the basic matters of cooperation in November last year, Jiji shipbuilding and Japan shipbuilding Union (JMU) recently disclosed the first concrete measure plan for capital and business cooperation.

In terms of business cooperation, the two sides plan to establish a new joint venture company in fy2020 (as of March 31, 2021) to integrate the sales and design departments of bulk carriers, oil tankers and other merchant ships. Among them, Jinzhi shipbuilding will contribute 51% to the new company, JMU will contribute 49%, and the new company will have about 500 employees.

The joint venture will be responsible for the sales and design of bulk carriers, large oil tankers and other shopping malls, combining JMU's strong strength in energy conservation and other environmental protection related technologies, as well as the advantages of the extensive sales network of Japanese and overseas shipowners owned by Jizhi shipbuilding.

Jinzhi shipbuilding and JMU hope that the new company can realize the integration of parts and manufacturing methods, increase the number of large orders, and reduce the cost of each shipyard. In the shipping industry, environmental regulations for emissions such as sulfur oxides are increasingly stringent, and the cooperation between the two companies is expected to reduce the burden of technology development costs.