Japan’s Enterprises Tackle The Challenges Of China and Korean Shipbuilding Industry

After several months of communication, Japan’s two major shipbuilding enterprises, Mitsui shipbuilding, and Chang Shi shipbuilding have formally worked together to cope with the market downturn and the challenge of Chinese and Korean shipbuilding enterprises.

In May 7th, Mitsui E&S shipbuilding and Chang Shi shipbuilding formally signed a business cooperation agreement, and the two sides shared resources in the construction of merchant ships.

In a joint statement, Mitsui E&S shipbuilding and Chang Shi shipbuilders said that the purpose of the cooperation agreement is to maintain their respective management independence and to achieve more orders through the cooperation of the two companies to enhance their design and R & D capabilities and cost competitiveness.

Mitsui E&S shipbuilding and regular stone shipbuilding will also cooperate with each other in the procurement of each other’s distribution channels and suppliers and share the manufacturing equipment of two companies in Japan and abroad (including shipbuilding and ship hull segments) to enhance the cost competitiveness of manufacturing. In addition, the cooperation will include personnel exchanges to share design, procurement and manufacturing technology, expertise and know-how. The two companies also undertake to support each other through effective deployment of their human and technical resources in terms of seasonal fluctuations and emergencies of workload.

The choice was made in cooperation with the Changshi shipbuilding industry, mainly because Mitsui shipbuilding considers Changshi shipbuilding as “a small number of shipbuilding enterprises that have achieved great success in the overseas expansion”.
Changshi shipyard owns two overseas shipyards, which were founded in 1994 in the Philippines, and the shipyard in Zhoushan, Zhejiang province, in 2003.

In April 2017, Mitsui shipbuilding decided to peel off the shipbuilding business, set up a subsidiary and actively promote cooperation with other shipbuilding enterprises because of the deteriorating shipbuilding business performance. Mitsui shipbuilding will be renamed as Mitsui E&S holdings, which has been operating independently since April 1, 2018, and has become the parent company of three wholly owned subsidiaries. Mitsui shipbuilding will take the new shipbuilding company Mitsui E&S shipbuilding as the center.