Japan’s ‘top’ shipbuilder restructures: Imabari gains upper hand in JMU

June 27, 2025, by Sara Kosmajac

Imabari Shipbuilding, considered to be one of the biggest shipbuilding players in Japan, has entered an agreement with compatriot JFE Steel Corporation and IHI Corporation to acquire a portion of the shares of Japan Marine United Corporation (JMU) previously owned by JFE and IHI.

Illustration only; Credit: Imabari Shipbuilding

As disclosed, once approvals from relevant domestic and international authorities are secured, the voting rights in JMU are set to shift from the current structure (Imabari: 30%, JFE: 35%, IHI: 35%) to an updated one, i.e., Imabari 60%, JFE 20% and IHI 20%.

Imabari Shipbuilding and JMU established a capital and business alliance on January 1, 2021, and jointly launched Nihon Shipyard, a joint venture (JV) focused on commercial ship designs and sales and to ‘bolster’ the international competitiveness of Japan’s shipbuilding industry.

However, in light of the increasingly challenging global market landscape anticipated in the future, the parties said they had determined that ‘strengthening’ their collaboration was necessary.

Despite being the world’s third biggest shipbuilding nation, Japan has seen a decline in both construction volume and order intake, which is why collaboration between companies in the sector is seen as “essential” by Imabari, JFE, IHI and JMU.

This status quo is mainly attributed to the rise of China and South Korea, which have retained the first and second spots, respectively.

China, in particular, has had a dominant presence in shipbuilding, with its yards clinching as much as 62% of the 2024 orderbook alone. This translates to yards based in the country securing contracts to build 3,454 out of a total of 5,735 units that were booked last year.

South Korea has followed close behind, as it was revealed that the nation had overtaken China briefly, in January this year. South Korea has also embarked on a mission to ‘bolster’ and ‘expand’ its own shipbuilding capacity, with the country’s government announcing in February 2025 that KRW 222.3 billion (circa $152.89 million) would be poured into the construction or conversion of at least 81 eco-friendly ships.

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Furthermore, as officials from Imabari further spotlighted, even in terms of technological capabilities—traditionally a stronghold of the Japanese shipbuilding industry—Japan is facing fierce competition from these countries. In response, the nation’s government has reportedly begun taking more ‘proactive’ steps.

It is understood that in June 2025, the ruling Liberal Democratic Party (LDP) submitted a national strategy proposal to Prime Minister Shigeru Ishiba, aiming to ‘double’ the country’s vessel construction output by 2030. As informed, the plan entails, among other endeavors, the promotion of zero-emission vessel technologies, modernizing domestic yards and helping Japan retain (if not lift) its position in the market.