By Ko Terada

Yomiuri Shimbun Staff Writer

Kawasaki Heavy Industries Ltd. intends to expand its defense business, President and CEO Yasuhiko Hashimoto said during an interview with The Yomiuri Shimbun.

"Conditions (for the defense industry) are now extremely healthy. It's getting easier for us to move forward," Hashimoto said. The following is excerpted from the interview.

The Yomiuri Shimbun: What do you think the year 2026 will be like?

Yasuhiko Hashimoto: While some of our businesses faced challenges in fiscal 2025 due to factors such as (U.S. President Donald) Trump's tariffs, we expect to see strong performance in fiscal 2026 across all sectors, including aviation and robotics. We aim to expand our operations by providing technologies that contribute to solving social challenges.

Yomiuri: The security environment right now is a challenging one, and Japan's defense-related spending has been increasing.

Hashimoto: Given the current international situation, there are many areas that cannot be defended with existing equipment alone. There has been an accelerating shift to "information warfare," and there is certainly a lot that still needs to be done.

I think conditions (for the defense industry) have become extremely healthy because talking about the importance of defense has become common in Japan. This may have been triggered by the difficult times (the defense industry faced) until a few years ago, when companies were leaving (the industry) one after another. Some manufacturers stopped making parts used in our production process, and we started making some of these ourselves. We must figure out how to grow the entire defense-related supply chain, including small and medium-sized enterprises.

Yomiuri: What about the way your defense operations are set up?

Hashimoto: We need to significantly increase our workforce. Although I can't specify the exact scale, we aim to grow the business by methods such as hiring externally and shifting personnel (from other divisions). Technologies enabling autonomous and remote operations, or AI-based situational judgment, are particularly critical areas. We also want to recruit specialists in AI and robotics.

Yomiuri: You have set a target of bringing in about 3 trillion yen in sales revenue on a consolidated basis by fiscal 2030. How does your defense business fit into this?

Hashimoto: Our "Group Vision" stipulates a target of 500 to 700 billion yen in sales revenue to be achieved by fiscal 2030. Based on current indications, we will almost certainly be able to reach 700 billion yen, and it's possible we could even exceed that.

Yomiuri: However, a series of misconduct cases has surfaced in connection with your defense business, including fictitious transactions involving submarine repair work for the Maritime Self-Defense Force and ship engine test data falsification.

Hashimoto: I think that the root cause of these problems should be considered through the lens of the "human weakness theory." Humans are weak; when backed into a corner, even scrupulous individuals may commit acts they shouldn't.

The data falsification occurred because employees, under pressure both from customers demanding urgency and from superiors, changed some numbers, believing they were doing almost no harm. To prevent this from happening again, we've invested billions of yen to implement mechanisms to make fraud impossible, such as automating inspections and installing cameras. The aim is to create systems that will act as a deterrent.

To prevent misconduct, we have to change our corporate culture and avoid placing responsibility solely on any one person. We want to thoroughly examine past issues and drain all the pus.

Yomiuri: Beyond the defense area, your robotics business also looks promising for growth.

Hashimoto: Our four-legged robot Corleo, showcased at the 2025 Osaka-Kansai Expo, has attracted significant interest not only in Japan but also internationally, with many expressing a desire to collaborate with us (on projects involving it). By combining it with a simulator (enabling simulated horseback riding), we should be able to expand the product's market into entertainment fields like e-sports. As a robot capable of traversing mountains and valleys, it has also been the target of inquiries from customers looking to use it for defense needs. The product thus holds potential for various applications (including dual-use military and civilian purposes).

Yomiuri: What about humanoid robots?

Hashimoto: We aim to have them ready for practical use in ten years. We don't intend to have our humanoid robots dance. Our goal is to make robots usable for operations in dangerous locations where humans cannot enter, such as disaster sites or aged infrastructure.

----

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.

YDN-M0000169258-1

(END) Dow Jones Newswires

December 30, 2025 23:09 ET (04:09 GMT)

Copyright (c) 2025 The Yomiuri Shimbun