NEWS 342 : FROM STEADY HANDS TO NEW HORIZONS
Dear colleagues, partners and readers,
Happy New Year.
As we welcome the start of 2026, I would like to extend my sincere greetings and take this opportunity to share a few thoughts and aspirations for the year ahead.
Looking Back on 2025
Reflecting on the past year, I’m pleased to report that our Newbuilding Division successfully completed six vessels as scheduled: two LPG carriers, two container feeders, and two coastal vessels. Among them, the domestic ships -- a RORO vessel equipped with a specialized cargo handling system and Japan’s first autonomously operated coastal container ship -- were both challenging projects that combined original designs with advanced technologies.
These vessels demanded significant efforts from the Design and Production teams, as well as many others across the company. Yet, as a shipbuilder that takes pride in originality, we remain committed to maintaining a structure that allows us to deliver not only our core models, but also innovative, one-of-a-kind vessels going forward.
On the commercial front, we secured newbuilding orders for a total of ten ships, capitalizing on the favorable market conditions. These contracts extend our construction schedule through the first half of 2029. In addition to repeat orders from existing customers, we welcomed new clients -- further proof that our technical capabilities and reliability are steadily gaining wider recognition.
Meanwhile, our Repairing Division continued to perform steadily, backed by strong demand and the trust of many long-time customers. We also expanded our client base while maintaining a stable workload, further strengthening this core business.
New Generation RORO Cargo Ship "SOUMEI"
Looking Ahead in 2026
Let me now share a few key areas of focus for us in the year ahead.
We plan to build one domestic container vessel and four LPG carriers this year.
With tightening environmental regulations and the growing diversity of fuel transport needs, we expect continued demand for LPG carriers. These ships require shorter in-dock periods but longer outfitting times, making coordination across teams, especially for manpower and berth scheduling, more critical than ever. We will work closely with shipowners and classification societies to ensure safe, damage-free, and timely delivery of every vessel.
In terms of design and development, our next-generation feeder container ship -- a key product line -- is progressing steadily, and we aim to present it to the market within this year. Alongside this, we are actively developing solutions in response to evolving customer needs, enhancing our competitiveness as a leading builder of feeder container vessels in Japan.
Japan's First Autonomouse-Ready Container Vessel "GENBU"
In addition, we’ve resumed R&D on a new type of refrigerated vessel suitable for transporting bananas and fruits, a ship type we last delivered in December 2000 (400,000 CF-class). This is part of our preparations for the anticipated replacement demand in the near future.
In 2026 as well, we will continue to embrace challenge and innovation as we forge the future of our shipyard.
A third priority is the reinforcement of our procurement power -- critical to any manufacturing enterprise.
As material and labor costs continue to rise, putting pressure on production budgets, our newly reorganized Material Purchase Division is working as one team to expand global sourcing and maintain a strong, stable procurement structure.
7,500m3 LPG carrier GAS HOPE
The final priority I wish to highlight is human resource development.
In a labor-intensive industry like shipbuilding, securing skilled workers is essential -- not just to maintain, but to expand our production volume. At the same time, we must also raise productivity by improving each employee’s skills and motivation.
With our centennial approaching, all 200 of us at Kyokuyo have spent the past year working together to develop a new MVV (Mission, Vision, Value) that reflects our company’s future. I’m delighted to announce that this initiative will soon bear fruit, with the public release of our MVV this spring.
I hope this shared foundation will unify us across all levels of the organization, from senior management to individual employees, while also allowing each person’s unique personality to shine through. In doing so, we aim to transform Kyokuyo into an organization that is both people-centered and resilient -- a key to overcoming workforce challenges in the years to come. Please look forward to the official MVV announcement on our website.
Delivery of ERASMUS EFFORT, a 1,096TEU JAPANMAX feeder
Group Strategy Going Forward
Let me also share a brief update on our group companies.
Straits Investment Co., Ltd. will continue expanding its fleet as part of our long-term strategy to establish shipowning as a second pillar of business alongside shipbuilding.
Straits Capital Co., Ltd., which focuses on non-maritime investments, is seeing steady growth among its portfolio companies -- several of which are now entering a new stage of development. We will continue to seek promising opportunities in emerging industries.
I would like to express my heartfelt gratitude to all of our stakeholders -- shipowners, trading companies, brokers, and others -- whose continued support makes our work possible.
Thanks to your trust and collaboration, Kyokuyo Shipyard enters 2026 in good health and with renewed purpose.
May this new year bring health, success, and fulfillment to you all!
We look forward to working with you again in 2026.
Warmest regards,
Katsuhiko Ochi
President, Kyokuyo Shipyard Corporation
