The partnership is meant to help the two companies compete better with their Chinese and South Korean rivals, taking advantage especially of Tsuneishi’s cost-competitive yards outside of Japan. They will consider jointly designing and building merchant ships, especially bulk carriers.

According to local media, MES already has close relations with Tsuneishi, providing it with technology for the design of merchant ships. It will expand its partnership by sending design and construction engineers to work with Tsuneishi on merchant vessels, as well as deepen cooperation in sales and procurement.

Tsuneishi is also looking into building large passenger ships, which MES may also assist with design and construction expertise.

The company has two overseas yards, one it set up Cebu in the Philippines in 1994 and the other in China’s eastern Zhejiang Province in 2003.