Japan's Two Major Chemical Shipyards Warm Up

- Apr 18, 2018-

On April 9, Fukuoka Shipbuilding and Shipbuilding, two of Japan's major chemical ship builders, also announced that Fukuoka Shipbuilding has obtained more than 90% of the shares in Sakao Shipbuilding.


Fukuoka Shipbuilding, a medium-sized shipyard located in Fukuoka Prefecture, Japan, and the neighboring Otaru Shipbuilding Company (Aobe City, Oita Prefecture), which is also the main business of chemical ship construction, is one of Japan's major chemical shipbuilders. Currently, Japan holds the largest share in the stainless steel chemical tanker market. After Fukuoka Shipbuilding and Sangharu Shipbuilding, the Japanese market will be dominated by the three shipbuilding companies of Fukuoka Shipbuilding Group, North Japan Shipbuilding, and New Zealand Island Shipbuilding. LR Elbow


According to Fukuoka Shipbuilding, in recent years, due to factors such as noise regulations and regulations on marine emissions and the uncertainties in the world economy, as well as the increasingly fierce competition between domestic and foreign shipbuilding industries, the Japanese shipbuilding industry is facing increasingly severe surroundings. By cooperating with Sakao Shipbuilding Co., LtdLR Elbow., which is also engaged in the construction of chemical shipbuilding, Fukuoka Shipbuilding will be able to improve its synergies and meet the needs of its business partners in a balanced way with the help of sales force, enhancement of design and development capabilities, and joint procurement of materials. Strengthen business capabilities.


Industry insiders believe that the merger of Fukuoka shipbuilding and shipbuilding is due to the increasingly fierce competition in the chemical ship market. The influence of Chinese shipping companies, including Guangzhou Shipyard International, Hudong Zhonghua, and China Aerospace Dingheng, on the chemical ship market has continuously increased, which has challenged the Japanese shipbuilding industry's leading position in this market.


According to the International Shipbuilding Network, according to Clarkson's latest statistics, there are currently four shipyards in the world's top five chemical tankers in terms of delivery quantity, including North Japan Shipbuilding No. 1, Fukuoka Shipbuilding No. 2 and Shipbuilding Shipbuilding. Shipbuilding ranked fourth and fifth on the New Zealand Island, and China Aviation Tripod ranked the third. In terms of the number of orders for small and medium-sized chemical tankers, China Aviation Dingheng ranked first with 28 ships. The number of orders held in hand was far higher than the second and third largest number of naval ships (11) and Fukuoka Shipbuilding (11).


At present, Fukuoka Shipbuilding and Sakai Shipbuilding will merge the design departments and jointly purchase, thereby enhancing cost competitiveness. For the construction of small and medium-sized ships, it is particularly difficult to meet the IMO noise pollution rules, as the space for small and medium-sized vessels is limited, and the crew area and mechanical area are usually very close.


In order to meet these regulatory requirements, small and medium-sized shipping companies have increased their investment in design research and development. The imminent emission restriction rules will also bring more cost pressures to small and medium-sized ship enterprises.


This is Fukuoka Shipbuilding's second acquisition this year. In January of this year, Fukuoka Shipbuilding acquired all the shares in Watanabe Shipbuilding in Nagasaki Prefecture and further consolidated Kyushu shipyards.LR Elbow


Also in January this year, Imabari announced the acquisition of Mitsui’s mid-sized shipbuilding company South Japan Shipbuilding. Miji Shipbuilding and Mitsui Engineering, the largest shareholder of South Japan Shipbuilding, and Mitsui, the second largest shareholder, have reached a basic agreement to acquire Mitsui & Co., Ltd. and Mitsui & Co., Ltd. Mitsui holds a 49% stake in South Japan Shipbuilding. It is also considering purchasing additional shares. South Japan Shipbuilding is also a shipyard specializingLR Elbow in the construction of chemical ships.


Market participants expect that in the future there will be more consolidation activities among private Japanese medium-sized ship companies. In Kyushu, Shikoku, and Hiroshima, a large number of independent medium-sized shipping companies are seeking to cooperate with large shipbuilding groups to use the engineering and R&D capabilities of large-scale groups.