Non-Subscriber ExtractSpending dearth withers Japan's industrial base |
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By Jon Grevatt
29 September 2009
Japan's defence industrial base is shrinking because of lower defence spending and fewer orders of domestic military equipment, the Japanese Ministry of Defence (MoD) has revealed.
A study completed by the MoD as part of its continuing review of the National Defense Programme Guidelines (NDPG) has found that changes in "Japan's defence environment" have had led to the withdrawal of industries - mostly small and medium-sized enterprises (SMEs) - from the defence sector.
The study also warned: "If the trend continues there will be a significant impact." As an example, the study highlighted figures related to the military aviation and land systems sectors. It did not publish figures related naval production.
The statistics show that since 2003 a total of 13 companies that manufactured equipment and components for infantry fighting vehicles and tanks for the Japan Ground Self-Defense Force have gone bankrupt and that 35 have either left the defence sector or ceased operations.
In addition, 20 subcontractors involved in the production of equipment and components for Japan Air Self-Defense Force fighter aircraft have already announced their withdrawal from the defence market or are in the process of doing so.