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High investment and low return, the Japanese machinery giant plans to no longer develop military veh

  • Source:World Wide Web
  • Release on :2019-02-25
[Global Network Report] Japan's "Yomiuri Shimbun" reported on February 21 that the Japanese machinery giant - Komatsu Manufacturing has notified the Japanese Defense Ministry, the company intends to stop developing new vehicles for the Self-Defense Force. It is reported that this is because Komatsu's production office does not see the same return as R&D investment, making the company's R&D and production business unsustainable.

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Komatsu has long developed and produced military vehicles for the Self-Defense Force. The first domestic wheeled armored vehicle equipped by the Japanese Ground Self-Defense Force was developed by the company. The company also produced more than 2,000 LAV light armored vehicles for the Self-Defense Forces and was used in UN peacekeeping operations.According to the report, Komatsu, which has long supported the Japanese defense industry, plans to stop developing new vehicles for the Self-Defense Forces, which is a symbol of the weakness of the Japanese defense industry. In 2016, the Japanese Ministry of Defense conducted a survey of 72 companies engaged in R&D and manufacturing of equipment. 52 companies reported that parts supply was interrupted due to bankruptcy and business abolition of subcontractors.

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The management of a defense company complained that "the situation of corporate income and expenditure is grim, and many enterprises continue to produce only with a sense of responsibility for the national defense cause." Some companies are also bringing together retired skilled workers to engage in production when orders are increased due to major disasters.
According to reports, the National Security Guarantee Strategy adopted by the Japanese government in 2013 defines the production and technical basis of defense equipment as an important factor supporting the defense force, and clearly proposes to maintain and strengthen the domestic industry.

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The "Defense Program Outline" revised at the end of 2018 also proposed the same policy. However, since the customers of the defense equipment are only the Japanese Defense Ministry, orders are difficult to grow.
Komatsu said that the company does not plan to carry out any development projects. “If income cannot offset development investment, the R&D and production base will be difficult to maintain”.