Japan has responded to mega yard mergers in neighbouring South Korea and China. The country’s top two shipbuilders, Imabari Shipbuilding and Japan Marine United (JMU), are forming an alliance and will enter into a capital tie-up. Imabari will take a nearly 30% stake in loss making JMU by purchasing new shares by the end of March.
The two yards account for 40% of Japanese shipbuilding output and together would command a 10% global market share.
In South Korea, Hyundai Heavy Industries is in the middle of a takeover bid for compatriot Daewoo Shipbuilding & Marine Engineering (DSME), while this week at Marintec China in Shanghai, delegates will get a first look at China Shipbuilding Group, the merger between CSSC and CSIC, which was completed last month. Both Korean and Chinese mergers will create shipbuilding giants with approximate 20% global market shares.