Japan Bolsters Defense Supply Chain by Contracting JSW To Produce Armored Vehicles for Self-Defense Forces

By Giuliano De Leon

May 07, 2024 04:13 PM EDT

Japan is bolstering its defense supply chain. Among its efforts is contracting Japan Steel Works (JSW), an industrial machinery maker, to produce armored vehicles for the country's Self-Defense Forces. The contract costs millions of dollars.

Japan Bolsters Defense Supply Chain by Contracting JSW To Produce Armored Vehicles for Self-Defense Forces
Armored vehicles of the Ground Self-Defense forces arrive at the annual anti-disaster drills in Tokyo's shopping district Ginza, 03 September 2000.
(Photo : KAZUHIRO NOGI/AFP via Getty Images)

Japan Contracts JSW To Produce Armored Vehicles

Nikkei Asia reported that the Japanese government provided a contract to JSW worth around $65 million. The Japanese industrial machinery firm will produce armored vehicles for the Ground Self-Defense Forces in this deal.

This is a big deal for both the government and the company. Right now, profit margins in the domestic defense sector are low, and more firms are withdrawing from the industry because of this. JSW securing the contract will greatly benefit the Japanese government.

The deal would also benefit JSW since it is the company's first defense contract for armored vehicle productions. Experts said that the new deal could encourage Japanese companies to get involved in making equipment to improve the nation's defense capabilities.

Read Also: Australia Boosts Defense Spending by Adding $7.2 Billion to Build Largest Navy's Surface Combat Fleet Since WWII

Japan Steel Works To Manufacture Armored Vehicles

According to its official website, Japan Steel Works is a company that strives for material innovation and solving social issues. It has developed and implemented industrial machinery and new materials that can solve society's problems.

JSW is expected to use its expertise to manufacture 26 armored personnel vehicles, which will be delivered to Japan's Ground Self-Defense Force by around 2026. The Japanese government made the orders in February as JSW's first order.

Japan Steel Works is expected to receive similar orders each year for the next 10 years. The armored vehicles it will deliver to the Defense Ministry will be produced at its manufacturing plant in Muroran in Hokkaido.

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