Japan’s biggest shipbuilder to buy domestic rival

Japan’s largest shipbuilder is acquiring a domestic rival. Executives at Imabari Shipbuilding say they’ve reached a basic agreement to take over the operations of Minaminippon Shipbuilding as of April 1st.

The executives say the aim is to boost production capacity and international competitiveness.

Minaminippon builds and repairs mainly tankers and vehicle carriers. It has annual sales of about 180 million dollars.

Competition from Chinese and South Korean companies is causing a number of Japanese shipbuilders to forge cost-cutting tie-ups or review their businesses.
Source: NHK World