Nihon Shipyard Co. Ltd, a joint venture between Japan Marine United Corporation (JMU) and Imabari Shipbuilding Co., Ltd., was established on January 1, 2021.
The capital and business alliance comes on the back of all the necessary regulatory approvals and review processes.
The Tokyo-headquartered shipyard will have around 500 of assigned employees from the two companies.
Under the terms of the deal, finalized in December 2019, Imabari will hold 51% stake, while JMU will hold 49% stake in the new company. The intended capital will total 100 million yen ($965K).
The main goal of the establishment of the joint venture is to bolster the competitiveness of Japanese shipbuilders by joining forces and combining expertise and knowledge from the sector.
Consolidation has been one of the key trends among Japanese shipbuilders over the past few years as a way of strengthening their competitive edge against the fierce competition from South Korean and Chinese rivals.
Within the framework of the new firm, Imabari and JMU want to cooperate in the production of blocks and large-size outfittings for all merchant ships except LNG carriers. The business scope will include offshore wind-related equipment built by Imabari and JMU.