- Japan Pushes Industry Revival with Imabari-JMU Deal and State Support.
- Korea Strengthens Global Presence Through Foreign Partnerships and Acquisitions.
- HD Hyundai and Hanwha Ocean Expand Operations in U.S., India, Philippines.
China is ramping up its efforts to take the lead in the global shipbuilding scene by pushing for major domestic mergers. Just this month, the state-owned China State Shipbuilding Corp. (CSSC) got the green light to merge two of its subsidiaries. This move is part of Beijing’s larger plan to restructure and grow its shipbuilding industry, reports The Korea Times.
Japan Revamps Industry with Backing from Government
Last month, Imabari Shipbuilding, the largest shipbuilder in Japan, announced it would be acquiring an additional 30 per cent stake in Japan Marine United (JMU), boosting its ownership to 60 per cent and making JMU a subsidiary.
The Japanese government is backing this consolidation effort and is looking to mobilise 1 trillion yen (about $6.8 billion) in public-private funding to upgrade facilities and possibly launch a state-owned shipyard. “Making JMU a subsidiary will help Japan as global competition heats up and China and Korea compete for technological leadership, which is a strength of the Japanese shipbuilding industry,” Imabari said.
Korea Expands Global Footprint Through Overseas Partnerships
While China and Japan are busy with their internal mergers, Korea’s shipbuilders are charting a different course by reaching out internationally through collaborations and acquisitions. HD Hyundai is ramping up its global connections, teaming up with Huntington Ingalls Industries in the U.S. and Cochin Shipyard in India. Just this week, HD Hyundai Chairman Kwon Oh-gap took a trip to Subic Shipyard in the Philippines to meet with and inspire the workers involved in building ships and offshore wind power facilities.
Another key player, Hanwha Ocean, is also broadening its international footprint. After acquiring Philly Shipyard in Philadelphia late last year, Hanwha is now eyeing a takeover of Australia’s Austal, which has shipyards in the United States.
Industry Experts Raise Alarm Over Growing Competition
Even though Korea currently leads the high-value vessel market, experts are sounding the alarm about increasing competition from neighbouring countries. “Although Korean companies have maintained a lead in the high-value vessel market thanks to advanced technologies, the rapid growth of Chinese and Japanese rivals could pose a threat unless the government increases support for the shipbuilding industry,” an industry official said.
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Source: The Korea Times
