Japan has approved the second round of investment plans under its new shipbuilding revitalization fund, providing a total of up to 98 billion yen (US$635 million) in government subsidies to five shipbuilding companies.
Specifically, the Ministry of Land, Infrastructure, Transport and Tourism has approved investment projects for Oshima Shipbuilding, Kawasaki Heavy Industries, Shin Kurushima Dockyard, Naikai Zosen, and Mitsubishi Shipbuilding. The maximum subsidy amounts for these companies are approximately 6.1 billion yen (approx. US$40 million), 15.6 billion yen (approx. US$100 million), 32 billion yen (approx. US$210 million), 4.3 billion yen (approx. US$28 million), and 40 billion yen (approx. US$260 million), respectively.
Including the first three projects approved in early September, Japan has now authorized eight shipbuilding investment plans. The initial government subsidies have been awarded to investment projects led by Imabari Shipbuilding, Japan Marine United, and Namura Shipbuilding, with maximum subsidy amounts of approximately 114 billion yen (approx. $730 million), 49.4 billion yen (approx. $316 million), and 49.9 billion yen (approx. $320 million), respectively.
This series of plans is expected to attract approximately 900 billion yen ($5.8 billion) in public and private investment over the coming years, with the Japanese government contributing up to around 311 billion yen ($2 billion).
These funds will be used to expand and modernize shipyards, including enlarging dry docks, upgrading cranes, and acquiring automated equipment, in support of the goal to double Japan’s shipbuilding capacity by 2035.
Taking Kawasaki Heavy Industries as an example, the shipbuilder will invest approximately $290 million at its Sakaide Shipyard to upgrade automation equipment and cranes, with the aim of increasing production capacity for liquefied gas carrier hulls. The government will provide up to $100 million in funding for this project.
Namura Shipbuilding plans to construct and commission a brand-new dry dock for building large vessels by 2035, to be located at the Imari plant—the heart of Namura Shipbuilding’s operations. This marks the first time in nine years that a new large dry dock has been built in Japan, and it is a direct result of Japan’s plan to revitalize its shipbuilding industry.