Imabari Shipbuilding Strengthens Ties with JFE Steel and IHI Corporation

Imabari Shipbuilding, considered to be one of the biggest shipbuilding players in Japan, has entered an agreement with compatriot JFE Steel Corporation and IHI Corporation to acquire a portion of the shares of Japan Marine United Corporation (JMU) previously owned by JFE and IHI.

Once approvals from relevant domestic and international authorities are secured, the voting rights in JMU are set to shift from the current structure (Imabari: 30%, JFE: 35%, IHI: 35%) to an updated one, i.e., Imabari 60%, JFE 20%, and IHI 20%.

Imabari Shipbuilding and JMU established a capital and business alliance on January 1, 2021, and jointly launched Nihon Shipyard, a joint venture (JV) focused on commercial ship designs and sales to bolster the international competitiveness of Japan’s shipbuilding industry.

In light of the increasingly challenging global market landscape anticipated in the future, the parties have determined that strengthening their collaboration is necessary. Despite being the world’s third biggest shipbuilding nation, Japan has seen a decline in both construction volume and order intake, making collaboration essential for Imabari, JFE, IHI, and JMU.

This decline is mainly attributed to the rise of China and South Korea, which have retained the first and second spots, respectively. China, in particular, has had a dominant presence in shipbuilding, securing a significant portion of the order book in recent years.

South Korea has also been ramping up its shipbuilding capacity, with the government announcing initiatives to expand and modernize its yards. Japan, known for its technological capabilities in shipbuilding, is now facing fierce competition from these countries.

As a response, Japan’s government has taken proactive steps, with the ruling Liberal Democratic Party submitting a national strategy proposal to Prime Minister Shigeru Ishiba to double the country’s vessel construction output by 2030. This plan includes promoting zero-emission vessel technologies and modernizing domestic yards.

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