Japanese shipbuilding majors Imabari Shipbuilding and Japan Marine United Corporation have received approvals from all competition authorities to move forward with the establishment of their Joint Venture company.
As disclosed, the capital and business alliance and the establishment of the joint venture company is set for January 1, 2021.
“The date has been finalized due to the conclusion of all reviews and approval processes related to competition law abroad. All remaining preparations are now being carried out,” JMU said.
The duo formalized their capital tie-up in December 2019.
The alliance aims to bolster the shipbuilders’ competitiveness in an ever-intensifying competitive environment in the merchant shipbuilding business.
The JV company also wants to maximize the shipyards’ effectiveness by jointing the marketing and design capabilities of the respective companies.
In addition, the duo plans to cooperate in production of blocks and large-size outfittings for all merchant ships except LNG carriers. The business scope will include offshore wind related equipments built by Imabari and JMU.
The trade name of the JV venture will be Nihon Shipyard, with the headquarters in Tokyo, Japan.
The investment ratio will see Imabari hold 51% stake, while JMU will hold 49% stake. The intended capital will total 100 million yen ($965K).
The company is designed to have approximately 500 of assigned employees from the two companies.