KHI aims to cut 20% of workforce

Japanese shipbuilder to close one of two docks in Sakaide.

Japan's Kawasaki Heavy Industries (KHI) intends to axe 20% of its shipyard workers.

The company said it will also close one of its two docks in Sakaide, according to the Nikkei daily.

Redundancies could total 400 people, but at least half of the positions will be lost through retirement and recruitment reductions.

The remaining workers could be re-assigned.

Sakaide, an LNG carrier specialist, is expected to stop making new vessels in 2019 after orders slumped.

Other operations like robot or rolling-stock manufacturing will transfer to the facility.

The Kobe plant meanwhile will start turning out specialised ships.

It is expecting three ferry orders in future weeks, including one from Tokai Kisen in June.

KHI's ship and offshore division produced an operating loss of JPY 21.4bn ($192m) in the year to the end of March.