Latest news with #ImabariShipbuilding
Korea Herald
01-07-2025
- Business
- Korea Herald
Japan shipyard merger challenges Korea's role in US naval projects
The recently announced merger of Japan's two largest shipbuilders, Imabari Shipbuilding and Japan Marine United Corporation, is expected to have a limited impact on their Korean rivals but signals growing competition for contracts with the US Navy. Experts say the widening gap stems from Japan's long-standing decline in shipbuilding, which cannot be fixed by size alone. Still, Japan's renewed push is raising concerns that Korea's bargaining power may weaken, given Tokyo's established ties in servicing US Navy vessels. Gap far from closed Imabari, Japan's largest shipbuilder, announced on Thursday that it will increase its stake in JMU from 30 percent to 60 percent, turning the country's second-largest shipbuilder into a subsidiary. 'Imabari Shipbuilding and JMU will leverage each other's strengths to compete with China and Korea, and will also make efforts to develop the Japanese shipbuilding industry by making quicker and more comprehensive judgments in terms of management,' the company said in a press release. If completed, the merger would create a company responsible for roughly half of Japan's shipbuilding output, which totaled 4.8 million compensated gross tons in 2024, bringing it close to Hanwha Ocean's output of 2.8 million CGT. However, experts say Japan's shipbuilding struggles stem not from the industry's size but from a long-term lack of investment dating back to its 1988 restructuring. 'Japan has strong basic technology, but shipbuilders have lagged in facility investment and faced workforce shortages,' said Yang Jong-seo, a researcher at the Overseas Economic Research Institute under the Export-Import Bank of Korea. 'The country lost many skilled technology personnel in the late 1980s and closed numerous naval engineering departments in universities, leaving little momentum to restore its industrial competitiveness.' Industry sources also cite Japanese shipbuilders' limited recent experience with high-value vessels, such as liquefied natural gas carriers — an area where Korean shipbuilders have established expertise. According to SK Securities, Imabari last delivered LNG carriers in 2018, and JMU in 2019, while Korean shipbuilders secured 68 orders in 2024 alone. This gap, driven partly by a shortage of skilled personnel, would make clients hesitant to place orders with Japanese firms lacking proven expertise in complex ship types, sources say. A challenge to Korea's efforts toward US Navy collaboration Japan's renewed push in shipbuilding, however, is raising concerns that Korea's position may weaken in bidding for US Navy projects, given Japan's long-standing involvement in US Navy maintenance and repair work. This comes as the US seeks greater collaboration with South Korea and Japan — its top shipbuilding partners outside China — to strengthen its naval capabilities in response to growing maritime challenges from China. 'The rapid progress of the merger between Japan's two leading shipbuilders shows that Japan is putting everything on the line to collaborate with the US on maintenance, repair and overhaul,' said Choi Ki-il, professor of military studies at Sangji University. 'It seems Japan is hoping for a revival of its shipbuilding industry by anticipating demand for new US warships and MRO.' Korean shipbuilders have been actively seeking to participate in the US' efforts to strengthen its maritime presence. Korea's largest shipmaker, HD Hyundai, is expanding its network to US-based shipyards and academic institutions, while Hanwha is acquiring US shipyards experienced in US Navy vessel construction. However, Korea needs to build trust with the US through simpler maintenance work, a factor crucial in projects involving US national security, said the Federation of Korean Industries, Korea's main business lobby. Last year, Hanwha secured Korea's first US Navy maintenance contracts for the Wally Schirra, a logistics vessel, and the Yukon, a replenishment oiler. In contrast, Japanese companies and personnel have been involved in MRO projects for the US Navy for over 70 years, primarily supporting the US Seventh Fleet. Experts say Japan will push ahead with shipbuilding restructuring to leverage its expertise as a strategic asset, especially in tariff negotiations with the US. Additionally, JMU's specialization in warships is expected to strengthen Japan's position, raising concerns about Korea's role in the US Navy's expansion efforts. 'I expect strong competition to emerge between Korea and Japan in the future military ship MRO market,' said Choi. 'It will be difficult for individual companies to deal with it alone. The government and shipbuilders must work together to develop a multifaceted strategy.'
Yomiuri Shimbun
27-06-2025
- Business
- Yomiuri Shimbun
Japan's Largest Shipbuilders to Come Together as Parent, Subsidiary Amid Tariff Talks
Japan's largest shipbuilder, Imabari Shipbuilding Co., announced Thursday that it will turn the country's second-largest shipbuilder, Japan Marine United Corp. (JMU), into a subsidiary. Imabari will acquire a 60% stake in the company. The move will create a giant corporate group that will control half the domestic market by shipbuilding tonnage. The two companies are looking to compete with Chinese and Korean shipbuilders by scaling up and reducing costs. Cooperation in the shipbuilding sector is also a major theme for Japan's tariff negotiations with the United States. Moves by Japanese companies to improve their competitiveness could help Japan in the negotiations. Imabari Shipbuilding, based in Ehime Prefecture, currently holds a 30% stake in JMU, which is based in Yokohama. The other 30% of JMU shares will be purchased from JFE Holdings, Inc. and IHI Corp., which have funded the company together with Imabari. The acquisition will go through as soon as Imabari receives approval from regulatory authorities in Japan and abroad. JFE and IHI will both see their stake in JMU fall from 35% to 20%. The value of the deal has not been disclosed. Acquiring JMU as a subsidiary 'will create synergy through the merging of our construction capabilities with JMU's technical capabilities in ship design,' said a spokesperson for Imabari. The companies aim to improve production efficiency through economies of scale that will make it cheaper to procure parts. They also hope to boost their development capabilities by combining their technological fortes. Imabari was founded in 1901 and has 10 shipyards, mainly in the Chugoku and Shikoku regions. The company builds various types of ships, including tankers, container ships and large bulk carriers that ferry ore and grain. JMU was formed in 2013 through the merger of JFE's and IHI's shipbuilding subsidiaries. It is known for building vessels, such as destroyers, and has shipyards in Yokohama and Kure, Hiroshima Prefecture. Imabari Shipbuilding and JMU entered into a capital and business alliance in 2020. They established a joint venture in 2021 for ship design and sales and have been working to improve manufacturing efficiency by standardizing parts. Japan was the global leader in shipbuilding in the 1990s, accounting for 40%-50% of the world market by tonnage. However, with the rise of Chinese and Korean builders backed by government support, Japan's share has fallen below 20%. Surrounded by the sea, Japan relies on ships to transport many of its resources and foodstuffs, making shipbuilding key to the country's economic security. The government has decided to help revitalize the shipbuilding industry. In tariff talks with Washington, Japan has proposed cooperation in the field, given that the United States is also seeking to revive its shipbuilding industry.
Nikkei Asia
26-06-2025
- Business
- Nikkei Asia
Shipping company ONE hedges against China risks with home-built vessels
ONE Singapore, the company's newest ship, can run on both heavy fuel oil and low-emission fuels like methanol and ammonia. (Photo by Tomonori Washida) TOMONORI WASHIDA TOKYO -- Container shipping company Ocean Network Express (ONE) unveiled a Japan-built ship on Tuesday, one of 15 vessels it plans to launch in the next two years as it looks to mitigate risks from ongoing U.S.-China tensions. "We like to think we are an international company, truly a global international company," said CEO Jeremy Nixon at the christening of a ship at an Imabari Shipbuilding plant in Mihara, Hiroshima prefecture, on Tuesday. "I'm very pleased to say that this was the first set of ships that we built, which are owned by ONE."
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Nikkei Asia
26-06-2025
- Business
- Nikkei Asia
Japan's top shipbuilder Imabari to make No. 2 JMU a subsidiary
Imabari Shipbuilding accounts for 30% of Japan's shipbuilding by weight. (Photo by Mayuko Suzuki) TOSHIHIDE TAKEDA TOKYO -- Imabari Shipbuilding, Japan's leader in the field, announced on Thursday that it will boost its stake in second-ranked Japan Marine United (JMU) to 60% and make it a subsidiary, looking to lower costs and increase competitiveness with Chinese and South Korean rivals. The acquisition amount has not been disclosed. The deal is subject to notification and approval from relevant domestic and overseas authorities, with completion expected to take several months.
26-06-2025
- Business
Japan's Imabari Shipbuilding to Make Industry Peer Subsidiary
News from Japan Economy Jun 26, 2025 22:56 (JST) Tokyo, June 26 (Jiji Press)--Top Japanese shipbuilder Imabari Shipbuilding Co. said Thursday that it will acquire second-biggest Japan Marine United Corp. by raising its equity stake to 60 pct. Currently, Imabari Shipbuilding holds 30 pct of JMU, while steelmaker JFE Holdings Inc. and heavy machinery maker IHI Corp. own 35 pct each. While Imabari Shipbuilding will double its stake, the remaining two shareholders will see their ownership ratio to drop to 20 pct. The share acquisition price was not disclosed. The deal will be completed upon regulatory approval in and outside Japan. JMU was established in 2013 through the integration of shipbuilding operations from JFE Holdings, IHI, Kanadevia Corp., formerly called Hitachi Zosen Corp., and Sumitomo Heavy Industries Ltd. Imabari Shipbuilding invested in JMU in 2021. [Copyright The Jiji Press, Ltd.] Jiji Press
