Recently, Japan approved the second batch of investment plans under its Shipbuilding Revitalization Fund, granting up to 98 billion yen (about US$635 million) in additional government subsidies to five shipyard groups.

The projects approved by Japan’s Ministry of Land, Infrastructure, Transport and Tourism involve Oshima Shipbuilding, Kawasaki Heavy Industries, the Shin Kurushima Group, Naikai Zosen, and Mitsubishi Heavy Industries’ shipbuilding division (Mitsubishi Shipbuilding).

The subsidy caps are approximately 6.1 billion yen (about US$40 million) for Oshima Shipbuilding; 15.6 billion yen (about US$102 million) for Kawasaki Heavy Industries; 32 billion yen (about US$208 million) for the Shin Kurushima Group; 4.3 billion yen (about US$28 million) for Naikai Zosen; and 40 billion yen (about US$260 million) for Mitsubishi Heavy Industries.

Together with the three projects approved in the first batch, Japan has now approved eight investment plans in total, with total public and private investment of about 900 billion yen (about US$5.83 billion), of which government fiscal subsidies may reach up to 311 billion yen (about US$2 billion).

The revitalization program is reportedly mainly used to purchase automation and labor-saving equipment, expand docks, add cranes, and upgrade other major production facilities, helping Japan achieve its annual shipbuilding capacity target.

For example, Kawasaki Heavy Industries plans to invest about US$290 million in its Sakaide Shipyard to install automated equipment, upgrade lifting equipment, and strengthen its hull construction capacity for liquefied gas carriers. The government will cover up to US$100 million of the investment in this project.

Earlier this month, the first round of the revitalization program allocated up to 213.1 billion yen (about US$1.36 billion) in subsidies to corporate groups led by Imabari Shipbuilding, Japan Marine United, and Namura Shipbuilding.