The government has decided on a public-private investment program worth ¥1 trillion to revive the shipbuilding industry and approved up to approximately ¥213.1 billion in support for 3 groups: 今治造船, JMU, and 名村造船所. A comparison of the latest earnings results of the 5 companies shows differences in profit growth.
As part of efforts to revive the shipbuilding industry, the Japanese government has announced plans to implement a public-private investment program worth ¥1 trillion. The Ministry of Land, Infrastructure, Transport and Tourism has approved support for 3 projects involving the 今治造船 Group, the Japan Marine United (JMU) Group, and the 名村造船所 Group. Maximum support amounts are approximately ¥113.8 billion for the 今治造船 Group, ¥49.4 billion for the JMU Group, and ¥49.9 billion for the 名村造船所 Group.
Japan’s shipbuilding output changed from approximately 16 million gross tons in 2019 to approximately 9 million gross tons in 2024, while its global market share also declined. The government has set a target of doubling output to approximately 18 million gross tons by 2035 and aims to expand public-private investment, including the Shipbuilding Industry Revival Fund, to approximately ¥350 billion over 10 years.
A comparison of the latest earnings results of listed shipbuilders and heavy-industry companies shows differences in profit growth despite the tailwind from the same shipbuilding demand, and examines the factors separating the companies’ performance.
Going forward, developments at the 5 companies and progress in actual investment and capital spending will attract attention as factors determining the extent to which the government’s targets are achieved.