This indicates a very high proportion of nonmarine business in the seven major companies, whereas the 11 medium-size companies are more specialized shipbuilders, relying heavily on the marine business.
Shipbuilding Policies
Completion of world newbuildings has been on the highest level for the last 20 years because of cyclical replacement of large vessels including VLCCs constructed in the 1970s. Given that developing shipbuilding nations will increase their newbuilding capacities and productivity of existing newbuilding facilities will be improved further, increase in world newbuilding capacity will continue. As a result, there would be a huge imbalance between newbuilding capacity and demand, which put all shipbuilders worldwide into more severe competition than ever before.
In order to consider the measures to cope with such a situation in the future, the Ministry of Transport has held meetings of experts in 1999. The committee of experts suggested that integration of management resources of Japanese major shipbuilders were essential for intensified international competitiveness and firm operational foundation.
Taking this suggestion into account, Japanese shipbuilders have moved towards strengthening their competitive edges through industrial restructuring including mergers.
The advanced high-speed ship, Techno Superliner (TSL), is now expected to start commercial services to respond to high-speed seaborne transport requirements. TSL will also contribute to development of local society and economy.
Small- and medium-scale shipbuilders also suffer from great decrease in newbuilding demand for coastal trans-port. Therefore, recovery from this sluggish business situation as early as possible is necessary, and these shipbuilders must have a new setup that can cope with any changes in demand for ships. For the resolution of these problems, comprehensive measures are now being taken for structural improvement, development of new demand, etc.
Outline of Shipbuilding Measures
(1) Restructuring in Japan's Shipbuilding Industry
Meetings to study structural problems in the shipbuilding industry held since June 1999, came up with a report announcing that Japanese major shipbuilders are now required to combine their capacities into strengthened management, to deal effectively with international com-petition on the world market in the 2000s. Inevitably, major shipbuilders must gain cost competitiveness and achieve a variety of business results in ship construction at the same time, egged on by the advantage of a larger scale in activities of sales, design and procurement.
