Declining profitability may cause Japan’s Kawasaki Heavy Industries to close its shipbuilding business.
The company said it would decide by the end of March 2017 whether to continue with the venture, according to its profit outlook lower for its fiscal year 2016.
The business is being affected by a stronger yen against the dollar and a decline in operating profitability, Kawasaki said.
The shipyard has 16 vessels scheduled for delivery from 2016 onwards, comprising nine large LNG carriers and eight VLGCs for major Japanese owners, plus a supramax for Taiwan’s Wisdom Marine, according to data from VesselsValue.com.
