Kawasaki Heavy Industries will invest approximately ¥45 billion in facilities related to the construction of next-generation energy vessels, including LPG, ammonia and liquefied hydrogen carriers, at its Sakaide Works in Sakaide, Kagawa Prefecture. The investment will be made from fiscal 2026 through fiscal 2034, and the company is expected to receive up to approximately ¥15.6 billion in government support.
Kawasaki Heavy Industries announced plans to expand its Sakaide Works in Sakaide, Kagawa Prefecture, investing approximately ¥45 billion in shipbuilding facilities at the key site. The investment includes the installation of facilities for building next-generation energy vessels, including LPG, ammonia and liquefied hydrogen carriers.
The company also received certification on the same day under the supply assurance plan for ship components and is expected to receive up to approximately ¥15.6 billion in government support. The investment includes the replacement of aging large cranes and the installation of automation-related equipment, and will be carried out from fiscal 2026 through fiscal 2034.
Kawasaki Heavy Industries aims to transform the facility into a next-generation shipyard using AI in partnership with U.S. chipmaker NVIDIA, but said that this AI initiative is not included in the scope of the current investment. The investment also excludes a plan to consider building facilities for LNG carriers at the site in collaboration with other companies.
The government has set a target of doubling domestic shipbuilding output in 2035 from the 2024 level. It established a shipbuilding industry revitalization fund in fiscal 2025 and plans to provide support totaling approximately ¥350 billion over 10 years.