Japan Govt Starts Supporting Defense Industry
Tokyo, May 6 (Jiji Press)--The Japanese government has started supporting the defense industry as domestic companies have increasingly been stopping building equipment for the Self-Defense Forces due to low profit margins.
The government is concerned that withdrawals by such companies, which are also in charge of equipment maintenance for the SDF in the event of an armed conflict, will directly hit Japan's defense capability.
In the past few years, several major Japanese companies that received equipment orders directly from the Defense Ministry have exited the industry.
In 2021, Mitsui E&S Shipbuilding Co. stopped manufacturing vessels for the SDF, while Sumitomo Heavy Industries Ltd. <6302> pulled the plug on operations involving new machine guns.
Daicel Corp. <4202> in 2020 decided to stop the manufacture of aircraft ejection seats.
[Copyright The Jiji Press, Ltd.]