Japan shipbuilders balk at US investment despite government push.

Japan shipbuilders balk at US investment despite government push.

South Korean industry better positioned for Seoul’s $150bn pledge.

In Japan, some shipyards do not have enough workers to make full use of their docks. Years of gradual decline have weakened shipbuilders’ financial footing. The industry has been slow to recover compared with South Korea’s and lacks the resources to invest in the U.S.

“We want to put our money toward increasing capacity in Japan and raising our current production volume,” Imabari’s Higaki has said.

The Japanese government seeks to improve the competitiveness of the shipbuilding industry, seeing it as increasingly important to cooperation with the U.S. as well as economic security. It is drafting a policy package to revitalize the sector, including not only a framework for the government to build and acquire shipyards to be run by the private sector, but also a 1 trillion yen ($6.7 billion) fund.