Friday, 17th December 2010
In General Japan News,
Shipbuilders switch from yen orders
Many Japanese shipbuilding companies are having to accept more orders in dollars because of the strong yen.
One of Japan's largest shipbuilders, Mitsui Engineering and Shipbuilding Company, has confirmed that 55 per cent of its contracts in the six month up to September were settled in dollars, reports the Wall Street Journal.
In the previous three financial years the company settled 70 per cent of its orders in yen.
There are growing concerns that the strength of the yen on the international currency market is undermining the Japanese recovery, especially as it appears to be impacting on industries in addition to car making and electronics.
Mitsui, which employs over 4,000 workers, has also announced that it plans to increase its purchase of shipbuilding materials from overseas in order to benefit from the strong yen and boost potential profit levels.
The US dollar has fallen by around 30 per cent against the yen over the past four years and was at a 15-year low at the start of last month.
Written by Susan Ballion.