As Japanese shipbuilders continue to face competition from larger, lower cost, competition in China and Korea, they are seeking to up their competitiveness. Read More: Japanese shipbuilders concerned over low prices, subsidies for Chinese and Korean yards
The latest cooperation agreement between Tsuneishi and Mitsui sees the two looking to work together across a wide variety of areas including design, research, procurement and use of production facilities. It however stops short of a full merger with both companies maintaining their respective managements.
“The purpose of the partnership agreement is to attain continuous growth of the shipbuilding business through collaboration between the two companies in building up design and development capacity, and cost competitiveness, and thereby obtaining more orders, while at the same time maintaining their respective independence in management,” the shipbuilders said in a statement.
The agreement covers six areas. The two shipbuilders plan to cooperate in the area of technological development – both future and existing, and they will also cooperate on technical design and manufacturing. The shipbuilders will seek to mutually utilise their manufacturing facilities in Japan and internationally, including block manufacture and outsourced shipbuilding.
They will also engage in joint procurement, personnel exchanges, and support human and technological resources to cope with seasonal fluctuations in workload.