Competition is intensifying among shipbuilders in Korea, China and Japan as each country vies for dominance in the global market.

As the governments of China and Japan are trying to make their shipbuilders bigger through domestic mergers and acquisitions, Korean companies are turning their attention overseas, forging partnerships with foreign firms and acquiring shipyards abroad.

Earlier this month, Chinese news outlets reported that the country’s state-owned China State Shipbuilding Corp. (CSSC) received approval to merge two of its subsidiaries.

Known as the world’s largest shipbuilder, CSSC has pursued the merger in line with the Chinese government’s strategy to restructure its shipbuilding sector. Once the merger is completed, China will have the world’s largest listed shipbuilder by asset size, operating profit and sales volume.

Japan is also stepping up efforts to revitalize its shipbuilding industry, which has lost ground to competitors in Korea and China.

Imabari Shipbuilding, Japan’s largest shipbuilder, announced last month that it will acquire an additional 30 percent stake in Japan Marine United (JMU), raising its ownership to 60 percent and making JMU a subsidiary.

The Japanese government is reportedly backing the deal and plans to raise 1 trillion yen ($6.8 billion) in public-private funding to modernize shipbuilding facilities and eventually establish a state-owned shipyard.

These actions are seen as part of broader efforts to compete with Korean firms for contracts to build, maintain and overhaul U.S. warships, especially as the Trump administration pushes to use allied shipyards to counter China’s maritime expansion.

China, Japan enlarge shipyards to challenge Korea
Competition is intensifying among shipbuilders in Korea, China and Japan as each country vies for dominance in the global market.

As the governments of China and Japan are trying to make their shipbuilders bigger through domestic mergers and acquisitions, Korean companies are turning their attention overseas, forging partnerships with foreign firms and acquiring shipyards abroad.

Earlier this month, Chinese news outlets reported that the country’s state-owned China State Shipbuilding Corp. (CSSC) received approval to merge two of its subsidiaries.

Known as the world’s largest shipbuilder, CSSC has pursued the merger in line with the Chinese government’s strategy to restructure its shipbuilding sector. Once the merger is completed, China will have the world’s largest listed shipbuilder by asset size, operating profit and sales volume.

Japan is also stepping up efforts to revitalize its shipbuilding industry, which has lost ground to competitors in Korea and China.

Imabari Shipbuilding, Japan’s largest shipbuilder, announced last month that it will acquire an additional 30 percent stake in Japan Marine United (JMU), raising its ownership to 60 percent and making JMU a subsidiary.

The Japanese government is reportedly backing the deal and plans to raise 1 trillion yen ($6.8 billion) in public-private funding to modernize shipbuilding facilities and eventually establish a state-owned shipyard.

These actions are seen as part of broader efforts to compete with Korean firms for contracts to build, maintain and overhaul U.S. warships, especially as the Trump administration pushes to use allied shipyards to counter China’s maritime expansion.

“Making JMU a subsidiary will help Japan as global competition heats up and China and Korea compete for technological leadership, which is a strength of the Japanese shipbuilding industry,” Imabari said.

In response, Korea’s HD Hyundai has strengthened partnerships with foreign companies, including Huntington Ingalls Industries in the United States and Cochin Shipyard in India. HD Hyundai Chairman Kwon Oh-gap also visited Subic Shipyard in the Philippines this week to encourage workers building ships and offshore wind power facilities at the site leased by the Korean company.

Hanwha Ocean, which acquired Philly Shipyard in Philadelphia late last year, is moving forward with plans to take over Australia’s Austal, which also operates shipyards in the U.S.
“Although Korean companies have maintained a lead in the high-value vessel market thanks to advanced technologies, the rapid growth of Chinese and Japanese rivals could pose a threat unless the government increases support for the shipbuilding industry,” an industry official said.
Source: Korea Times