To maintain Japan's domestic manufacturing of defense-related equipment, the government is planning to provide comprehensive financial support to the declining defense industry and nationalize manufacturing plants of firms that may find it difficult to continue operating even with such support.
In the latter case, the government would keep ownership of the manufacturing facilities while commissioning the production of equipment to firms willing to take over the business.
The plan is aimed at reducing fixed costs for such companies while maintaining domestic production of important equipment. The government intends to submit a required bill to the ordinary Diet session next year.
