Japanese shipbuilder Tsuneishi Shipbuilding revealed plans to lower the construction ratio of bulk carriers by 2023 and shift to other ship types such as tankers and containerships.
In response to falling ship prices and ocean freight affected by excess shipping tonnage worldwide, the shipbuilder said it plans to promote a strategic product mix and build a structure to accommodate diverse needs.
The announcement comes on the back of Tsuneishi Holdings’ financial results for the fiscal year ended December 2016 which show that sales in its shipbuilding unit declined by 14 percent to JPY 154.3 billion (around USD 1.4 billion).
During the year, shipbuilding business output was nearly flat with the construction of 45 ships, but vessel orders declined significantly due to the impact of last-minute orders before environmental regulations became effective in 2015, according to Tsuneishi.
Apart from the construction of bulkers, boxships, livestock carriers and tugboats, Tsuneishi expanded the business scope in FY 2016 with the addition of Miho Shipyard. The main focus of Tsuneishi’s new subsidiary is building fishing boats.
In 2016, the company nearly completed the large-scale investment in Tsuneishi Factory that started about two years ago to enhance crane and other capabilities. As informed, the facility has been now brought to the level of the company’s overseas bases of Tsuneishi Heavy Industries (Cebu) in the Philippines and Tsuneishi Group (Zhoushan) Shipbuilding in China. The company expects to complete capital investments in the factory in 2017, with productivity anticipated to further improve.
In the report, Tsuneishi also revealed that its shipping business, affected by the dry bulk market downturn, recorded sales of JPY 26.9 billion, a YOY decline of 17 percent.