The Japanese Ministry of Defense (MoD) has revealed defence contracting statistics for recent years, showing a significant increase on spending on US military equipment and also a continuing high dependency on local contractor Mitsubishi Heavy Industries (MHI).
A spokesperson from the MoD’s Acquisition, Technology, and Logistics Agency (ATLA) disclosed to Jane’s on 22 August that spending on US equipment through the Foreign Military Sales (FMS) programme has increased approximately seven-fold since 2011.
According to ATLA, Japanese MoD spending on FMS contracts in fiscal year (FY) 2011 was JPY58.9 billion (USD533 million) but this had climbed to JPY488.1 billion by FY 2016. The figure is expected to decline slightly to approximately JPY400 billion in FY 2017, which ended 31 March 2018.
US acquisitions to have contributed to the major increase include procurement of Lockheed Martin F-35 fighter aircraft, Sikorsky UH-60 medium transport helicopters, Northrop Grumman E-2D Advanced Hawkeye airborne early warning and control aircraft, Bell-Boeing V-22B Block C Osprey tilt-rotor aircraft, and the Lockheed Martin Aegis combat system.
In terms of locally awarded contracts, MHI retained its position in FY 2017 as Japan’s most prominent contractor, securing around 16% of procurement funds. During the year, MHI was awarded with 169 contracts, with major deals including acquisitions of platforms including Type 16 combat vehicles, the Type 12 coastal defence system, Type 10 main battle tanks, and Souryu-class submarines.
The statistics also reveal that MHI has been the MoD’s most dominant contractor in all but one of the past six years. In 2015, Kawasaki Heavy Industries (KHI) was top contractor but in 2016 and 2017 it fell back into second place behind MHI. In FY 2017, KHI secured 11% of Japan MoD procurement funds, winning 138 contracts. These included contracts for KHI’s P-1 maritime patrol aircraft, C-2 transport aircraft, and KHI-produced Boeing CH-47 Chinook heavy lift helicopters. (end of excerpt)
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