Japan Heavy Machinery builders' R&D spend to rise 11% in FY09

Research and development (R&D) spending by major shipbuilding and heavy machinery companies is projected to grow 11 per cent to 203.5 billion yen (US$2.1 billion) for the year ending March 2010, with the top-ranked Mitsubishi Heavy Industries Ltd. raising such outlays by 18 per cent. Mitsubishi Heavy will use the bulk of these funds in such fields as power systems, nuclear power generation and aviation, including the joint development of a midsize nuclear reactor with French firm Areva and its own development work on the MRJ small passenger jet.
IHI Corp. will spend as much as it did last fiscal year, seeking to develop technologies for use in aircraft engines and production technologies for nuclear power systems.
Kawasaki Heavy Industries Ltd. plans to step up R&D for railcars, motorcycles and industrial gas engines.
R&D spending will be slightly less than last fiscal year at Mitsui Engineering & Shipbuilding Co. and Sumitomo Heavy Industries Ltd. (6302), but the decreases will be kept to a minimum in order to maintain R&D capabilities.
All but IHI are expected to turn profits this fiscal year.
Meanwhile, the five firms' combined capital investment is estimated to fall 9 per cent to 335.5 billion yen. Mitsubishi Heavy, which plans to mass-produce parts for Boeing Co.'s 787 Dreamliner as well as increase output of power systems, is the only one boosting capital spending.