Nikkei Asia reports that Imabari Shipbuilding and other Japanese shipbuilders are planning to jointly invest an initial amount of around JPY350 billion (US$2.3 billion) to modernise their existing manufacturing facilities.
The collaboration aims to double Japan's shipbuilding capacity within the next decade through a series of facility upgrades.
Yukito Higaki, Imabari Shipbuilding President and Chairman of the Shipbuilders' Association of Japan (SAJ), will disclose the investment plan at a meeting with members of the country's Liberal Democratic Party on Thursday, October 23.
The JPY350 billion will form a portion of a larger state-led fund amounting to over JPY1 trillion (US$6.6 billion).
The SAJ's 17 member companies intend to raise the initial JPY350 billion through various means including loans. However, the members admit that they are limited in their ability to provide the remaining amount needed under the JPY1 trillion arrangement.
Some Japanese shipbuilders expect that a portion of the fund will be allocated for the domestic construction of new LNG carriers to compete against the Chinese- and South Korean-made vessels that have been preferred globally due to lower costs.
