Japanese government passes shipbuilding bill
The Japanese Diet has passed a package of shipbuilding measures aimed at promoting the competitiveness of domestic shipbuilders against Japan’s rivals China and Korea.
Under new Japanese shipbuilding legislation, Japanese yards can now get tax breaks, subsidies, and low interest loans if the government approves their business plans, especially restructuring and investment plans that promote increased productivity.
Domestic shipping companies will also be offered financial assistance if they order vessels built by firms with government-approved business plans.
Japan has lost its pole shipbuilding position in the last twenty years and a report from Danish Ship Finance said: “China and South Korea are gaining market share at Japan’s expense, but all three regions are struggling to secure enough new orders to utilise their yard capacity.”
