Another Japanese shipbuilding tie-up is on the cards. Local business newswire Nikkei reports that Mitsui E&S Holdings is in talks with compatriot Tsuneishi Holdings to form a shipbuilding joint venture that would create the second largest shipyard group in the country after Imabari and Japan Marine United who are also in advanced negotiations over their own merger.
For the last two years, Mitsui E&S and Tsuneishi have had an operational tie-up involving ship design and parts procurement.
Japanese shipbuilding has been forced into greater collaboration as the industry faces being squeezed out of business by cheaper rivals in South Korea and China.
Elsewhere, Mitsubishi Heavy Industries is in negotiations to sell off its Koyagi plant in Nagasaki to Oshima Shipbuilding.
Japan’s global market share, measured by the amount of shipbuilding orders, dropped to 16% in 2019 from 32% in 2015.