A famous yard in Japan is set to close. The Aichi Works shipyard belonging to IHI, which opened in 1973, will be shuttered soon following a dramatic collapse in offshore orders. The yard boasts one of the largest drydocks in Japan. The 500 workers at the facility will be shifted to other parts of the IHI empire and the site will be redeveloped.
In 2013, IHI merged its main shipyard division with Universal Shipbuilding to create Japan Marine United, but its Aichi site was kept outside of the deal and has since maintained its focus on offshore structures as well as SPB tanks for LNG carriers. However, demand for its Aichi products has virtually disappeared forcing the closure of the yard.
Amid a slump in orders many Japanese yards are either joining forces or slimming down. Kawasaki Heavy Industries, for instance, is preparing to close a site in Kagawa prefecture.