Japanese shipbuilding industry builds up partnership with Brazil's large newly-established local shipyards on the basis of its high technology and capital.

Five shipbuilding-related companies in Japan, including Mitsubishi Heavy Industries, Imabari Shipbuilding, Oshima Shipbuilding, Namura Shipbuilding and Mitsubishi Corporation, decided to proceed participation of capital into Ecovix-Engevix, Brazil's large shipyard.

Nihon Keizai Shimbun (The Nikkei) reported on October 20 that these five companies are under negotiation on whether to invest in Ecovix-Engevix with a total of JPY 30bn ($306m) and own 30% of shares.

These five Japanese companies are to make an official announcement of establishing special purpose company (SPC) for the investment on October 22, under a plan of joint investment worth up to JPY 30bn in the Brazilian shipyard until spring, 2014,

Meanwhile, Japan's Kawasaki Heavy Industries snapped up a 30% stake in a Brazilian yard, Estaleiro Enseada do Paraguacu (EEP), in May, 2012, and is under construction of the Bahia-based large shipyard (started construction in July, 2012).

Also, in June of this year, Japan Marine United (JMU), IHI Corporation and JGC Corporation decided to jointly establish a special purpose company in Brazil and carry out an around 25% share investment (to be expanded up to 33%) of Estaleiro Atlantico Sul (EAS) from the SPC.