Sumitomo Heavy Industries will extend operations at its Yokosuka Shipyard through a deal with Imabari Shipbuilding to produce two tanker hulls, delaying the facility’s planned exit from commercial shipbuilding.
The arrangement provides a temporary lifeline for the Kanagawa Prefecture yard, which was set to cease vessel construction next year as parent company Sumitomo Heavy Industries Marine & Engineering withdraws from the shipbuilding business after more than 125 years, Nikkei reported.
Sumitomo Heavy announced its departure from commercial shipbuilding in early 2024, blaming rising steel costs and pricing volatility that made the business unsustainable against overseas competition. The company had planned to repurpose Yokosuka for offshore wind power foundation manufacturing, aligning with Japan’s renewable energy push.
Under the new agreement, Yokosuka will build hulls for Japan’s largest shipbuilder, with deliveries scheduled for 2027 and 2028. Imabari will supply materials including steel plates and engines, while Sumitomo Heavy’s marine unit handles construction at the Tokyo Bay facility.
The collaboration highlights the challenges facing Japanese shipbuilders, who have ceded market leadership to Chinese and South Korean rivals offering lower prices. Japan’s global shipbuilding share has collapsed from 50% in the 1990s to third place today.
For Sumitomo Heavy, the deal provides interim revenue while transitioning Yokosuka’s specialized capabilities toward the growing offshore wind sector.
