Happy New Year to everyone!

As we welcome 2025, I would like to extend my heartfelt wishes for a year filled with health, success, and meaningful achievements.

Looking back on the past year, we successfully completed six newbuildings - five container ships and one whaling catcher. Notably, the Kangei Maru, completed in March, was the first whaling mother ship built in Japan in 71 years. This highly challenging project integrated advanced environmental features and cutting-edge technology throughout. Thanks to the extraordinary efforts of every department within the "Team Kyokuyo," the vessel was delivered on schedule. This achievement resonated strongly, both in Shimonoseki and across national media, marking a pivotal milestone in Kyokuyo Shipyard's 82-year history.

In addition, we secured new orders for seven vessels in a generally favorable shipbuilding market. This includes repeat orders from five longstanding clients and two new customers from both Japan and overseas. Our repair ship division also performed exceptionally well, buoyed by the continued patronage of many companies and a stable volume of construction work.

As we look ahead, allow me to share our challenges and aspirations for the coming year.

This year, we are constructing two highly advanced ships.

The first is a coastal RORO cargo ship, a type we haven’t built in some time. To enhance cargo-handling efficiency and maximize loading rates, the ship will feature high-density outfitting, including a large stern ramp and inboard elevators within a compact hull. This complex design demands meticulous planning and execution, but we are fully committed to delivering the vessel in May, leveraging all our expertise and capabilities.

The second is one of four vessels in Phase Two of the Nippon Foundation’s MEGURI 2040 unmanned ship project, featured on television last December. This coastal container ship, Japan’s first autonomous vessel, has drawn significant attention both domestically and internationally.

Our new standard feeder container ship design, introduced in last year’s New Year message, is nearing the final stages of conceptual development. This design aims to maximize container capacity within physical constraints, and we plan to launch it this year.

Additionally, as announced last December, we secured Approval in Principle (AiP) from ClassNK for our new 12,000m³ ammonia carrier design. This was developed in collaboration with Uyeno Transtech Inc. and Izumi Steel Works, Inc. As we step further into carbon-neutral initiatives, we are eager to embrace the opportunities this pivotal year presents.

Material costs, particularly steel, continue to represent a significant challenge. To address this, our newly established materials department is working to enhance purchasing strategies, ensuring stable and robust procurement from fresh perspectives. This effort is crucial to maintaining cost efficiency and supporting our competitiveness in the manufacturing industry.

The shipbuilding industry remains labor-intensive, and maintaining a skilled workforce is a pressing challenge. With growing difficulty in attracting young talent and meeting social demands such as improved work conditions and more guaranteed time off, we are taking proactive steps. These include enhancing compensation, fostering local talent, and boosting Kyokuyo Shipyard’s visibility through social contributions and community-focused initiatives, such as sports promotion.

Our group companies are also evolving. Straits Investment Inc., which focuses on maritime investments, currently owns eight vessels through its overseas subsidiaries. We aim to expand this fleet further and develop it as a core business pillar.

Meanwhile, Straits Capital Inc., our non-marine investment arm, is moving into a preparatory stage for its next growth phase, with steady business performance improvements across its portfolio companies.

Finally, I wish to express my deepest gratitude to the shipowners who entrusted us with their orders and to the trading companies and brokers who facilitated our business negotiations. Your trust and collaboration enable Kyokuyo Shipyard to continue thriving as a reliable partner in the maritime industry.

May 2025 bring health, prosperity, and new opportunities to all. We look forward to working with you in the year ahead and achieving even greater milestones together.

Warm regards,
Katsuhiko Ochi
President, Kyokuyo Shipyard Corporation