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Japanese Shipbuilding Alliance Threatens Korea

Maritime Activity Reports, Inc.

September 5, 2016

 According to the Nikkei, Mitsubishi Heavy Industries Ltd. (MHI)  has entered negotiations with Imabari Shipbuilding Co., Ltd., Oshima Shipbuilding Co., Ltd. and Namura Shipbuilding Co., Ltd., each first, third, and fourth, respectively, in terms of shipbuilding tonnage, to form an alliance in the area of commercial ships.

The plan of the alliance is to pool their resources in efforts to compete more effectively with their Chinese and Korean rivals, reports Korea Herald.
If successful, the alliance is expected to create the second-largest tonnages, behind the world’s No.1 shipbuilder Korea's Hyundai Heavy Industries. 
MHI) said that it "recognizes the need to undertake swift and progressive steps to secure the competitive strength required by Japan's shipbuilding industry in order to compete, and mark sustained growth, in the global marketplace."
In addition to cooperating in the areas of shipbuilding R&D and parts procurement, Mitsubishi is looking for ways to outsource shipbuilding jobs to the three junior partners in bids to realize economies of scale and raise cost competitiveness.
Hyundai tops the global shipbuilding market with 6.2 million tons of ships in 2015. Hyundai’s two affiliate dockyards -- Hyundai Samho Heavy Industries and Hyundai Mipo Dockyard -- came in at third and sixth. 
Daewoo Shipbuilding and Marine Engineering is currently the world’s second largest with 3.6 million tons, while Samsung Heavy Industries came in fourth with 3 million tons.

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