JAPANESE SHIPYARDS TO FORM CARTEL, CUT OUTPUT
Japan's ailing shipyards have won
approval from the Fair Trade Commission to form a cartel to
slash production to about half of total capacity for one year,
effective April 1, industry sources said.
    The approval follows an act of parliament passed last week
designed to help the industry regroup and shed 20 pct of
capacity by March 31, 1988, Transport Ministry officials said.
    The cartel, comprising 33 yards capable of constructing
ships of more than 10,000 gross tonnes, will limit newbuilding
output to a maximum of three mln compensated gross registered
tonnes in 1987/88, the Shipbuilders Association of Japan said.
    Industry sources said the 33 will seek to renew the cartel
in 1988/89 in the belief demand will remain sluggish.
    Last week's temporary act of parliament also allows
shipbuilders to receive favourable taxation terms plus up to 50
billion yen in compensation for liabilities incurred through
job losses and the sale of excess capacity.
    Up to 30 billion yen has been allocated for purchasing
redundant land and equipment from shipbuilders.
    The Ministry will start drawing up its restructuring
guidelines from April 1 and the yards will implement the
guidelines from September, industry sources said.
 REUTER
