- Japan’s global shipbuilding share falls from 50% to 10% historically
- Government plans 1 trillion yen investment to strengthen shipbuilding capabilities
Japan aims to double annual shipbuilding output from around 9 million gross tonnes to 18 million gross tonnes by 2035 under its Shipbuilding Industry Revitalization Roadmap, formulated by the Ministry of Land, Infrastructure, Transport and Tourism and the Cabinet Office late last year.
Shipbuilding thick plate demand projected to rise 50%
Achieving this target could increase Japan’s annual demand for shipbuilding thick plates by around 50%, from the current 2.7 mnt to approximately 4.05 mnt by 2035. To support this growth, Nippon Steel is exploring ways to expand shipbuilding block processing capacity and improve welding productivity, according to Kensuke Nakanishi, consultant and general manager of the company’s Thick Plate and Building Materials Division.
Shipbuilding already accounts for just over 40% of Japan’s total thick plate demand, making it the largest end-use segment. Nippon Steel is assessing opportunities to expand its involvement in the sector, focusing on block processing and welding productivity.
The company does not currently undertake shipbuilding block processing through its group companies but is evaluating the feasibility of entering this segment. Potential locations include Oita and Kimitsu, where Nippon Steel operates thick plate mills, as well as other regions.
Nippon Steel targets welding efficiency through automation
Alongside capacity expansion, Nippon Steel is focusing on improving welding productivity through automated welding robots and advanced welding materials. Japanese shipbuilders face production constraints due to a shortage of skilled welders and the need to reduce welding time. Labour-saving technologies will be essential to increase output with fewer workers.
Nippon Steel plans to collaborate with its group company, Nippon Steel Welding Industry, to offer integrated solutions combining base plates with welding technologies. The initiative aims to accelerate welding, expand automation and improve production efficiency. The company also plans to gain practical insights into shipyard welding operations to develop solutions that better address industry needs, Nakanishi said.
Japan plans 1 trillion yen investment to revive shipbuilding
The Japanese government plans to support the industry’s expansion through 1 trillion yen in public and private-sector investment over the next decade. Its strategy envisages increasing shipbuilding capacity by around 50% through investment in facilities and equipment, alongside productivity gains of approximately 25% through digital transformation (DX), robotics and artificial intelligence (AI).
Further improvements are expected through inter-company collaboration, industry restructuring and cost reductions. Together, these measures are intended to help Japan double domestic shipbuilding output by 2035.
Japan loses ground to China and South Korea
The push to revive domestic shipbuilding comes as Japan’s share of the global market has declined sharply. The country once accounted for around 50% of global shipbuilding output, but its share has since fallen to approximately 10%, compared with around 50% for China and 30% for South Korea.
The gap is also evident in newbuilding orders. Japan accounts for around 5% of orders, compared with approximately 60-70% for China and around 20% for South Korea. China’s growing share highlights the competitive challenge facing Japanese shipbuilders and the need to strengthen domestic production capabilities.
Strong order backlogs support revival efforts
Despite losing global market share, Japanese shipbuilders have substantial order backlogs, with slipways expected to remain occupied until around 2030 on average. The weak yen has supported the sector, although Japanese shipping companies continue to place orders with Chinese and South Korean shipbuilders.
Against this backdrop, revitalising domestic shipbuilding has become a priority for both industrial competitiveness and economic security. The sector is among the 17 strategic areas identified under the Takaichi administration, reinforcing the government’s focus on rebuilding Japan’s shipbuilding capabilities.
Note: This article is published as part of a content sharing agreement between Japan Metal Daily and BigMint.
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