Japanese shipowner Kyoiei Tanker is expanding its fleet of Very Large Crude Carriers (VLCCs) and has ordered a 310,000 DWT VLCC from Ariake Shipyard, a subsidiary of Japan Marine United (JMU). Delivery is expected in 2029.
This new shipbuilding project is not the first collaboration between JMU and Kyoei Tanker; the former previously delivered two VLCCs to the latter in 2018 and 2020.
The shipbuilding contract has been confirmed by Kyoiei Tanker. Following approval by Kyoiei Tanker’s board of directors and the signing of a final agreement by the partners by the end of 2025, this new vessel will be acquired through a joint ownership structure. The vessel will be held either directly by Kyoiei Tanker or through a consolidated subsidiary in which it holds a 70% stake.
Kyoiei Tanker declined to disclose the contract price citing confidentiality, but stated that the cost aligns with current market levels. Funding will be secured through a combination of internal resources and bank financing. According to Clarkson data, the current market price for VLCCs stands at $128 million per vessel.
Kyoiei Tanker last ordered a VLCC in 2019, which was constructed by Japan’s Namura Shipbuilding. This newbuilding investment is a key component of Kyoiei Tanker’s fleet renewal strategy, aimed at maintaining its long-term presence in the crude oil tanker market.
Data indicates that Kyoiei Tanker currently operates six VLCCs and two Very Large Gas Carriers (VLGCs). Additionally, one bulk carrier and one liquefied petroleum gas (LPG) carrier under construction are scheduled for delivery in 2027. Its Singapore affiliate holds three LPG carriers, two bulk carriers and one MR product tanker.
Notably, JMU, which has secured the newbuilding contract for Kyoiei Tanker, was recently incorporated as a subsidiary of Japan’s largest shipbuilding group, Imabari Shipbuilding. This development marks the emergence of a new major shipbuilding group on the global stage.
JMU comprises seven shipbuilding facilities: Ariake Shipyard, Kure Shipyard, Tsu Shipyard, Maizuru Shipyard, Yokohama Shipyard Isogo Works, Yokohama Shipyard Tsurumi Works, and Innoshima Shipyard, as well as a technology research and development center.
On January 6, 2026, JMU’s three major shareholders—Imabari Shipbuilding, JFE Holdings, and IHI Corporation—completed the equity transfer of JMU. As a result, the shareholding ratios of Imabari Shipbuilding, JFE Holdings, and IHI Corporation in JMU changed from 30%, 35%, and 35% to 60%, 20%, and 20%, respectively. This merger does not affect the establishment of the joint venture shipyard Nihon Shipyard by the two parties in 2021.