By Koichi Kuranuki
Yomiuri Shimbun Senior Writer
Major Japanese heavy machinery manufacturer IHI Corp. plans to make 650 billion yen worth of investments in fields such as commercial aircraft engines, nuclear power and ammonia utilization in the three fiscal years through March 2029.
The figure represents an increase of about 60% from the 409.7 billion yen the company spent through the previous three fiscal years, through March 2026.
The target was revealed at a press conference held Friday during which the company announced its long-term growth strategy with an eye toward 2040.
The company said that, in the energy sector, it aims to "consolidate its position as the top maker in the domestic nuclear power field." Plans made by the Japanese government assume that nuclear power's share of the national energy mix will rise to 20% by the fiscal year ending March 2041, and IHI intends to boost its ability to supply nuclear-related facilities and equipment accordingly.
Furthermore, as ammonia utilization is expected to advance with the transition to a decarbonized society, IHI hopes its proprietary technology for using ammonia as a fuel for thermal power generation will become widely adopted.
The following is excerpted from remarks by IHI President and CEO Hiroshi Ide during the Friday press conference.
Hiroshi Ide: I anticipate growth in the aerospace, energy and infrastructure markets as we move toward 2040. I want to narrow down our focus areas so that we can invest resources in them in greater concentrations. A significant number of experienced professionals in such fields as aerospace and energy have joined our company.
Nuclear power and ammonia technology will be our sources of strength in the energy sector, while operations such as maintenance will be very important in the infrastructure sector. Furthermore, we have provided comprehensive product life cycle support for years, and we will continue to place high value on this service as a stable revenue base.
In the initial phase, over the three fiscal years through March 2029, we will invest aggressively and conduct well-planned sales of our real estate. Over the three years after that, we will position our commercial aircraft engine business as our primary driver of growth, supported by expanding aftermarket services. I believe we are unlikely to see significant growth in the coming nine years if we stick to conventional methods. We aim to take a novel approach so we can achieve a different level of growth.
When we make investments, we promise to deliver solid returns. We will make a bold shift in our allocation of resources so that our operating profit margin will exceed 20% in the fields of commercial engines, national defense and nuclear power by the fiscal year ending March 2032. As for shareholder returns, we will maintain stable dividends for now, with plans to expand them later.
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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May 12, 2026 01:12 ET (05:12 GMT)
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