Consolidation – and by extension greater focus and economies of scale – continues in the revived Japanese shipbuilding sector with news that Imabari Shipbuilding, the nation’s top yard, is to take control of Japan Marine United (JMU). The Higaki family-controlled Imabari announced yesterday it will up its stake in JMU from 30% to 60%, and make it a subsidiary. JMU is itself a merger of yards, coming out of the consolidation 12 years ago of the shipbuilding operations of JFE Holdings and IHI. JMU and Imabari have been in a business alliance for the past six years. “Imabari Shipbuilding and JMU will leverage each other’s strengths to compete with China and Korea, and will also make efforts to develop the Japanese shipbuilding industry by making quicker and more comprehensive judgments in terms of management,” Imabari said in a release. Japan, once the undisputed titan of global shipbuilding, is embarking on an ambitious journey to rejuvenate its maritime manufacturing prowess, aiming to double its shipbuilding output by 2030. This strategy, spearheaded by the ruling Liberal Democratic Party (LDP) and the newly appointed leadership of the Japan Shipbuilding Industry Association (JSIA), is driven by a complex interplay of economic security, decarbonisation imperatives, and a desire to regain significant global market share in a rapidly evolving geopolitical landscape. For decades, Japan commanded a dominant position in shipbuilding, accounting for nearly 50% of global output in the 1990s. However, intense price competition, coupled with substantial state subsidies and economies of scale enjoyed by Chinese and South Korean yards, led to a sharp decline. Today, Japan’s global market share has plummeted to roughly 10%, trailing far behind China (70% of newbuild capacity) and South Korea. Yukito Higaki, Imabari’s president, was recently appointed chairman of the JSIA, and he has set an audacious target: regaining at least 20% of the global shipbuilding market share by 2030. “To become a price leader who has the power to control pricing, we must at least achieve a 20% global market share by 2030,” Higaki stated earlier this month, signalling a clear intent to re-establish Japan as a formidable force. The LDP’s proposal, submitted to prime minister Shigeru Ishiba, emphasises the critical role of maritime manufacturing capabilities in national security. The plan is underpinned by Japan’s 2022 Economic Security Promotion Act, allowing direct government support for industries deemed vital to national interest. This includes the rehabilitation of dormant shipbuilding and repair facilities and incentivising public and private investment in next-generation infrastructure. Japan is actively seeking collaboration with the United States to counter China’s maritime dominance. Discussions are underway for a Japan-US Shipbuilding Revitalization Fund to channel investment into both domestic and US-based yards. Japanese firms are eyeing contracts for car carriers, LNG carriers, and ice-class naval vessels for the US market, positioning themselves as strategic alternatives to Chinese suppliers. This collaboration also extends to naval cooperation and the establishment of a bilateral maritime supply chain decoupled from China. To achieve its ambitious goals, Japan’s plan includes a national shipyard model. The government proposes a “state-owned facility private operation” approach, where the government funds and builds shipyard infrastructure estimated at ¥50-80