Slow modernization of shipbuilding facilities in Japanese yards interrupts their progress.
Hyundai Heavy Industries of South Korea operates the world's largest yard with yearly capacity of 28 vessels. Japan's one of largest yards, Universal Shipbuilding's Ariake Shipyard can only build a total of seven to eight vessels in a year.
Competitors' advances have been pointed out several times, however, Japanese government-led restructuring or M&A has not been carried out yet and yards' attempt to expand market share also went amiss.
Some blame Japanese shipbuilders' high-ranking management parties, who do not look straight at current crisis, having attached to their glorious success in the past.
JFE and IHI's affiliated shipbuilders would be merged in October and both revealed that there may not be layoffs, under the conditions of not shutting down any of their eight yards and repair docks.
To survive in a much more competitive global market, Japanese builders must proceed reformation and cost reduction. However, the situation is shameful that despite over four years of discussion on merge, it has not left the starting line yet.