Kawasaki Heavy Industries (KHI) is downsizing its shipbuilding and offshore structure operations in Japan by around 30% amid a protracted downturn in new orders.
KHI will close on its docks at its Sakaide works by 2020 and will cuts its headcount by around 2,500.
While cutting back on home soil, KHI plans to ramp up operations in China where it has two joint ventures with Cosco – in Dalian and Nantong. More ships will be built in China including LNG carriers, KHI said.
KHI had mulled spinning off its shipbuilding and offshore division as well as looking at forming an alliance such as the one just announced by Mitsubishi Heavy, Imabari and Namura. In the end it decided a downsizing at home was its best option.