Mitsui E&S Shipbuilding is to wind down production at its Tamano yard and focus production on its partnerships with Yangzijiang Shipbuilding in China and compatriot Tsuneishi Shipbuilding.

At the announcement of its 2020 medium-term business plan, company president Ryoichi Oka said the company plans to complete its Tamano orderbook but after that production will focus on facilities of its partnership companies.

The Tamano facility currently has four 66,000-dwt bulk carriers on order that are due to be completed in 2021. Tamano also has a navy shipbuilding capability.

Oka did not completely close the door to future shipbuilding business at the Tamano facility, which employs around 850 people, and said it could possibly build merchant ships again.

“There are shipowners who want to build in Japan and, if prices increase, then it might be possible to build ships at Tamano again,” he said.

The average newbuilding price for ultramax bulk carriers in which Tamano specialises in is currently $24m, compared to $26m two years ago, according to data from broker Clarksons.

Under the new business plan, Mitsui E&S hopes to increase its share of the small and medium-sized bulker market from 8% to 20% through the creation of a global production system.

As recently reported by TradeWinds, Mitsui E&S’s tie-up with Tsuneishi is being extended from a technical to equity partnership. Tsuneishi’s main shipbuilding plants are also outside Japan in China and the Philippines.

The production partnership with Yangzijiang is called Yangzi-Mitsui Shipbuilding.

Mitsui E&S’s other main facility at Chiba in Japan is also scheduled to run out of orders in 2021.

Under the its new business plan, Mitsui E&S’s main Japan-based shipbuilding activities will mainly involve ship design and technology development.

The company is also involved in ship engine and equipment manufacturing and creating shipping and transport logistics systems. Mitsui E&S partners sister company Modec in the design and construction of floating production, storage and offloading vessels.