A Japanese shipyard is shifting more production to China in order to focus on a new revenue stream at home.

Kawasaki Heavy Industries will move most of its LPG carrier production process to a joint venture yard, Nantong Cosco KHI Ship Engineering (NACKS), that it runs with Cosco in Nantong, freeing up the yard to focus on developing liquid hydrogen carriers, a new seaborne trade that Kawasaki Heavy is leading the world in terms of ship designs.

Kawasaki Heavy has said it will construct all LPG carriers in China in the coming years, bar the engines, which will be installed in Japan.

In addition to its naval commitments, Kawasaki Heavy has said it will focus on building hydrogen carriers on home soil. The company, a pioneer of LNG carrier construction in previous decades, became the first in the world to launch a liquefied hydrogen carrier at the turn of this year. It is now readying designs of 160,000 cu m to aid Japan’s bid to foster a strong hydrogen energy mix.