J-ENG's global expansion is leading to a rapid increase in UE engine production. ~The growth cycles in the three main sectors, “Main Engines, Licenses, and After-Sales Service” are operating in a virtuous cycle. ~

Japan Engine Corporation (J-ENG) develops, manufactures, sells, and licenses its own brand, "UE Engine" and the number of orders for UE Engine in the global market are expanding with high evaluation for its high reliability, high economy, and environmental friendliness.

J-ENG is steadily expanding its market share in global market by adopting a niche strategy that accurately targets the volume zone of the market, particularly by strengthening its lineup of main engines with a bore of 60cm or less, and by deepening its collaboration with overseas licensees.

Under this strategy, the number of UE Engines in the world production rapidly expanded to 123 units in fiscal year 2025, approximately four times the amount produced in fiscal year 2021. Furthermore, UE Engines are planning to double production by fiscal year 2028 compared to fiscal year 2025, and this growth speed is expected to accelerate even further.

This expansion in production volume for UE Engines for new shipbuilding has led to growth in royalty revenue from the licensing business and increased demand for after-sales services due to the growing number of vessels in service. As a result, the business field in "Main Engine, License, and After-sales Service" are mutually driving growth and creating a virtuous cycle.

Furthermore, to support this growth, J-ENG has been selected for the "Project to Promote the Construction of Zero-Emission Vessels" a joint project between the “Ministry of Land, Infrastructure, Transport and Tourism (MLIT)” and “Ministry of Economy, Trade and Industry (METI)”, utilizing “GX(Green Transformation) Economic Transition Bonds”, and has commenced construction of a new factory for ammonia fuel engine. Upon completion of the new factory in fiscal year 2028, J-ENG's UE Engine production capacity is expected to expand to approximately 1.5 times that of conventional heavy fuel oil engines.

In the Chinese market, UE's sole licensee, GDF (Guangzhou Diesel Engine Factory Co., Ltd.), has completed a new factory in Guangzhou, and is now significantly increasing production by utilizing its two-factory system in conjunction with its existing factory. In the first, UE's business domain in the Chinese market was primarily focused on domestic coastal vessels in China. However, through strengthened collaboration with the Chinese Design Institute, this has expanded into the ocean-going vessel market, further increasing UE engines' presence in the Chinese shipping market. Other Chinese licensees are also expanding their facilities, and further production growth and market share increases for UE Engines across the Chinese market are expected.


In Japan, the shipbuilding industry has been positioned as one of the “17 sectors of the government's growth strategy”, with the aim of doubling shipbuilding volume by 2035. J-ENG will respond to this significant movement by promoting research and development, investment in equipment, and global expansion, and will reliably capture the growing demand.

J-ENG will leverage its strengths as the world's only global licensor, capable of handling from development, design, manufacturing, sales, and after-sales service, and will advance its core technologies for existing fuel oil engines and next-generation fuel (as carbon-free) engines, promoting a growing portfolio management in three business fields, such as main engines for new vessels, licensing, and after-sales service. Through strengthening collaboration with UE licensees and improving its value chain and after-sales service system, J-ENG will continue to enhance the presence of UE engines in the global market, aiming for sustainable growth and increased corporate value.