Japanese shipbuilders are proceeding with projects backed by approximately JPY900 billion (US$5.7 billion) in combined investment from public and private sources aimed at doubling national output.
The projects include new cranes, welding automation and the restoration of an earthquake-damaged dock, The Japan Times reported on Monday, October 26.
The Ministry of Land, Infrastructure, Transport and Tourism approved eight supply-security plans under the Economic Security Promotion Act. It approved three on September 4 and five on September 11, with maximum government assistance of approximately JPY311 billion (US$1.97 billion).
The government's target is 18 million GT of annual domestic output by 2035, roughly twice the 2024 capacity baseline of 9.07 million GT.
Imabari Shipbuilding's total investment is expected to reach approximately JPY300 billion (US$1.9 billion). The money will fund the installation of large jib cranes capable of lifting heavy loads, along with robots that expand steel plate welding capacity at sites such as Marugame in Kagawa Prefecture and Saijo in Ehime Prefecture.
Government assistance of up to approximately JPY113.8 billion (US$720 million) was approved for the application covering Imabari, Tadotsu Shipbuilding and Steel Hub.
"We need to continually assess production volumes," the company told Jiji.
Hakodate Dock will restore its number four dock in Hokkaido for newbuilding. The dock has been unusable since the 1993 earthquake off southwestern Hokkaido.
Work will begin with draining the dock and inspecting its condition, followed by recovery work. The company expects shipbuilding to restart around 2032.
Once restored, the dock is expected to enable the yard to produce more than twice as many small bulk carriers annually as the approximately five it built in 2024.
Hakodate Dock and Namura Shipbuilding plan to invest up to approximately JPY150 billion (US$950 million) over 2026–2035, including maximum assistance of JPY49.9 billion (US$320 million).
The programme also covers production buildings at Hakodate and Muroran and Goliath cranes at Namura's Imari yard in Saga Prefecture.
Oshima Shipbuilding will install cranes and improve buildings at its Koyagi plant in Nagasaki with up to approximately JPY6.1 billion (US$39 million) in assistance. The plant is expected to produce approximately 10 bulk carriers annually by around 2031, or 2.5 times its current output.
Kawasaki Heavy Industries (KHI) was approved for up to approximately JPY15.6 billion (US$99 million) in assistance to digitalise its Sakaide plant. The work includes deploying AI robots to address shortages of welders and other skilled personnel.
"We will transform shipbuilding sites," KHI President Yasuhiko Hashimoto told Jiji.
Japanese construction volume fell from approximately 16 million gross tons in 2019 to nine million in 2024. The current approvals follow a JPY350 billion (US$2.22 billion) joint modernisation proposal in October 2025 and Imabari's acquisition of a 60 per cent stake in Japan Marine United in January 2026.
