-- Japan has relaxed restrictions on defense equipment exports, paving the way for overseas sales and prompting companies, including IHI (TYO:7013) and Mitsubishi Heavy Industries (TYO:7011), to expand capacity, Nikkei reported Tuesday.
The changes, cleared by the cabinet of Prime Minister Sanae Takaichi, remove limits that confined shipments to noncombat roles, according to the report.
Manufacturers are stepping up investment as global demand rises, particularly for missiles and air defense systems. Japanese companies are also seeking to fill supply gaps faced by the U.S. and other producers amid heightened geopolitical tensions, the report said.
The shift signals stronger growth prospects for the sector, though constraints around labor, supply chains and limited combat track records remain, according to the report.
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