On September 1, Japan’s Acquisition, Technology & Logistics Agency (ATLA) released an invitation for private companies to establish defense industrial facilities within a multifunctional defense base that the Ministry of Defense (JMOD) is to build on a former Nippon Steel Corporation steel works site situated in Kure, Hiroshima Prefecture.
In a public call,[1] ATLA explained that it is to open up a commercial zone designated for private sector defense equipment R&D, production and maintenance within the Kure “multifunctional integrated defense base”, which will also serve as an integrated training and logistics hub for the Japan Self-Defense Forces (JSDF).
Background to the Kure Multifunctional Integrated Defense Base
JMOD’s proposal to build the multifunctional complex on land reclaimed from Nippon Steel’s shuttered Setouchi Works site was first revealed in March 2024, six months after Nippon Steel closed its facilities on the Kure site in September 2023.[2]
The three functions then proposed by JMOD for the base included 1) manufacturing and maintenance of defense equipment with private sector participation, 2) JSDF disaster response, training, and logistics, and 3) port functions.
JMOD’s initial land-use plans were subsequently revealed in September 2024, followed by more detailed zoning mapping in March 2025 for the approximately 140-hectare Kure site, which once hosted the shipyard where the Yamato battleship was built during World War II.
In July 2025, the ministry subsequently reached an agreement with Nippon Steel on the basic terms of sale of the site. On August 28 this year, JMOD then formally signed the contract with Nippon Steel to acquire the former steelworks site.[3]
Latest Construction Plans for the Kure Complex
Latest details on the construction plans for the new multifunctional base – located near the Kure Naval Base that hosts the SDF Maritime Transport Group – were provided by JMOD during a meeting on September 11 with stakeholders from the Kure City local government, the Hiroshima Prefectural Government and Nippon Steel Corporation.[4]
JMOD outlined how, in addition to the commercial zone, the new Kure complex will include facilities for the manufacture, maintenance and testing of unmanned surface and underwater vehicles (USVs/UUVs), a disaster-response hub, JSDF administrative and training facilities, and logistics, storage, fuel and maintenance functions primarily supporting naval operations.
The ministry expects to be able to provide concrete budget information when the government budget proposal is finalized this December, before completing its basic study of the facility layout by the end of March 2027.
About the Complex’s Commercial Zone
ATLA’s plan for the commercial zone is to attract companies that can contribute to expanding Japan’s overall R&D, manufacturing, and mass-production capacity for defense equipment, while also supporting the growth of the regional economy in Hiroshima Prefecture.
Inviting private companies to establish premises within the JSDF complex is also intended to support closer integration of defense-equipment manufacturing and maintenance with JSDF training, logistics and other operational functions.
Of the complex’s total area of around 140 hectares, 18.8 ha are expected to be allocated for the commercial zone in a phased approach.
The first phase will see approximately 5.5 ha made available for lease from around the beginning of fiscal 2028. Of the remaining 13.3 ha, approximately 4.5 ha is expected to become available around the beginning of fiscal 2029, with the remaining 8.8 ha to be leased progressively through the end of fiscal 2042.
Companies Expected to Participate
ATLA has provided requirements that eligible companies are expected to meet.
ATLA explains that firms are expected to establish facilities for defense equipment R&D, manufacture, or maintenance.
The agency goes on to explain that it is looking to bring in companies that can contribute to strengthening and sustaining Japan’s defense industrial base.
Interestingly, ATLA also indicates a preference for companies engaged in international co-development projects.
At the same time, the agency is also prioritising the participation of firms that can create local employment and provide business opportunities for companies regionally based in Hiroshima Prefecture.
Potential Technology Area Priorities
ATLA does not appear to have publicly provided a list of target technological areas that companies selected for the Kure defense complex’s commercial zone are expected to specialize in.
However, areas of interest can potentially be deduced from the wider rationale of the Kure integrated defense base and the stated requests that local government stakeholders have made to JMOD.
Overall, we can expect ATLA to select firms with a strong maritime systems focus as the base appears to be mainly geared towards hosting a JSDF naval presence and related infrastructure.
The nearby USV and UUV manufacturing and testing area also make the base’s commercial zone a prime location for private sector developers in the maritime autonomous systems field, as well as for firms engaged in developing underwater sensors and other payloads.
More traditional maritime and aerial transport providers could also be relevant, owing to the fact that the Kure complex is expected to support both JSDF logistics and regional disaster response.
Naval maintenance and sustainment is also likely to be a major area of interest, given that JMOD plans include dedicated ship-loading and sustainment zones, both situated near the complex’s quay areas.
Meanwhile, Kure City local government officials have emphasised a need for those private companies invited by JMOD to the complex’s commercial zone to be able to provide local jobs as well as contracting opportunities for local businesses.[5] Given the shipbuilding and steel industry pedigree of Kure, this demand further increases the potential for the zone to focus on naval systems.
Finally, the Hiroshima Prefectural Government has requested JMOD to establish AI and cybersecurity-related research centers in the commercial zone. AI could align well with maritime unmanned system development, while cybersecurity could have some relevance for a JMOD information-and-communications facility that will also be on the site.
Next Steps and Selection Timeline
Regardless of the types of companies ultimately selected, ATLA opened the initial call on September 1 and is accepting expressions of interest until October 30.
ATLA will then provide detailed application guidelines to eligible companies, accept formal proposals, and conduct evaluations before announcing the selected companies around May 2027.
Selected companies are then expected to begin on-site development of facilities in the Kure multifunctional integrated defense base’s commercial zone from the latter half of fiscal 2028.
Notes:
[1] ATLA, “「多機能な複合防衛拠点」への民間企業誘致に係る企業の募集” [Call for Private Sector Companies to Locate at the“Multifunctional Integrated Defense Base”], September 1, 2026, https://www.mod.go.jp/atla/kigyou_boshu/pdf/kigyoubosyu_r080901.pdf.
[2] JMOD, “令和6年3月5日（火）08:41～08:50｜木原防衛大臣閣議後会見” [Tuesday, March 5, 2024, 08:41–08:50 | Press Conference by Defense Minister Kihara following the Cabinet Meeting], Nippon Steel Corporation, “Execution of Contract for Sale of Former Setouchi Works Kure Area Site”, August 28, 2026, https://www.nipponsteel.com/en/newsroom/news/2026/__icsFiles/afieldfile/2026/08/28/20260828_150.pdf.
[3] Nippon Steel Corporation, “Execution of Contract for Sale of Former Setouchi Works Kure Area Site”, August 28, 2026, https://www.nipponsteel.com/en/newsroom/news/2026/__icsFiles/afieldfile/2026/08/28/20260828_150.pdf.
[4] JMOD, “呉地区における多機能な複合防衛拠点の整備について” [Regarding Development of a “Multifunctional Integrated Defense Base” in the Kure District], September, 2026, https://www.city.kure.lg.jp/uploaded/attachment/114451.pdf.
[5] Kure City, “呉地区における多機能な複合防衛拠点の整備に係る協議議事概要” [Summary of Discussions Regarding Development of a Multifunctional Integrated Defense Base in the Kure District], September 11, 2026, https://www.city.kure.lg.jp/uploaded/attachment/114451.pdf.
