Mitsubishi Heavy Industries (MHI) has entered into an agreement with the Shimonoseki City Government regarding the acquisition of land on the artificial island of Choshu Dejima in Yamaguchi Prefecture.
The acquired land will be used for the expansion of Mitsubishi Shipbuilding’s production capacity. The company will move some of its functions from the Enoura Plant of MHI’s Shimonoseki Shipyard and Machinery Works to the new site.
Mitsubishi Shipbuilding also intends to establish a facility there to manufacture hull blocks, strengthening its production capabilities.
MHI expects a total project investment of JPY100 billion (US$630 million), with government subsidies expected to contribute up to JPY40 billion (US$250 million).
The investment was intended to increase commercial shipbuilding capacity at the Shimonoseki yard by 25 per cent in FY2028.
The contracted site covers about 140,000 square metres and costs about JPY3 billion (US$19 million), Nikkei reported. The newspaper said the company was targeting a start of operations in 2030.
“With the importance of shipbuilding capacity increasing in light of the outlook for global seaborne transportation demand and growing economic security concerns, the project is intended to strengthen Mitsubishi Shipbuilding's competitiveness over the medium to long term and establish a stable shipbuilding framework,” MHI said.
Japan’s Ministry of Land, Infrastructure, Transport and Tourism has set a national target of 18 million GT of shipbuilding capacity by 2035, roughly double the 9.07 million GT recorded in 2024. The ministry’s policy calls for stronger production capacity to secure vessel supply against projected demand.
Japanese shipbuilders had previously proposed initial investment of about JPY350 billion (US$2.21 billion) to modernise manufacturing facilities, alongside a broader state-led funding plan. Baird Maritime covered the proposed capacity expansion in October 2025.
