Kawasaki rejigs capacity

Japanese shipbuilder Kawasaki Shipbuilding is reducing newbuilding capacity at its Sakaide Shipyard by returning to a one-dock system from the current two-dock one in the autumn next year.

As newbuilding demand shrinks, it is adjusting shipbuilding pace and the yard’s operating hours are expected to decrease by 20%. Sakaide Shipyard had originally built newbuildings with one dock (Dock No. 3) measuring 420 m by 75 m but it has been increasing its capacity amid newbuilding boom in recent years.

Dock No. 3 is engaged in building LNG carriers while Dock No. 1 is constructing LPG carriers, Capesize and Handymax bulkers. Dock No. 2 specializes in ship repair.

When the one-dock newbuilding system is introduced again, the yard’s operating hours are forecast to be less than 3 million hours annually, compared to 3.9 million hours in 2007.

Furthermore, outsourcing of ship block manufacturing is expected to decrease. During the peak boom period, block construction outsourcing stood at 6,000 to 7,000 tonnes a month, but it would be declining to 1,000 tonnes by the end of next year.

While decreasing capacity against the backdrop of the industry downturn, Japanese shipbuilders seek to make profits through enhancing productivity.