Mitsubishi Heavy Industries (MHI) is investing approximately 100 billion yen (equivalent to $635 million) to expand shipbuilding capacity in Shimonoseki. The company has signed an agreement with the city of Shimonoseki to create a new production base on the artificial island of Choshu Daijima.
Details of the Shipbuilding Capacity Expansion Project
The Mitsubishi shipbuilding unit has announced that some current tasks at the Anora factory located in the Shimonoseki shipbuilding and machinery workshop will be transferred to the new site. Additionally, this unit will construct a new facility for producing ship hull blocks. This project is expected to receive up to 40 billion yen (equivalent to $253 million) in subsidies from the Japanese government.
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Approval from the Ministry of Transport and Future Plans
Mitsubishi Shipbuilding received approval from the Ministry of Transport last month for its investment plan under Japan's Economic Security Promotion Law. This law categorizes ship hulls as critical national products. According to disclosures from the local government prior to the final contract signing, the Choshu Daijima land covers approximately 14.5 hectares and has been priced at about 3.04 billion yen (equivalent to $19.3 million).
Construction is expected to begin in April 2027, with operations targeted to commence by March 2030. This investment is part of a broader plan to revitalize Japan's shipbuilding industry, which will help strengthen domestic shipbuilding capacity.
The Tokyo government last month approved up to 40 billion yen in support for this company as part of the second round of financing for five shipbuilding groups. In total, eight investment plans have been approved in the first two rounds, as Japan seeks to increase domestic shipbuilding capacity through new production facilities, automation, and workshop upgrades.
MHI has stated that this expansion will help strengthen production capacity and create a more sustainable shipbuilding structure, as demand for new fleets and concerns about economic security are on the rise.
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