Japanese firm Tsuneishi Shipbuilding Co. Ltd. is expanding its Cebu operations to increase its capacity and develop the Philippine facility into Southeast Asia’s “mother shipyard.”
“We want to capitalize on the country’s growth and become the mother shipyard among Southeast Asian countries, and (for our Cebu shipyard) to be the shipping capital of the Philippines,” said Hitoshi Kono, president of local unit Tsuneishi Heavy Industries (Cebu) Inc.
“We want to strengthen the Philippines’ role as a (shipbuilding) hub in Asia,” Kono added.
Tsuneishi plans to increase its Cebu shipbuilding output to about 30 vessels per year starting 2017 or 2018 from the current 21 ships yearly by “increasing productivity and maximizing facilities.”
Kono said the steady growth of vessel orders being placed with the company indicates that the market has been gradually improving since the 2008 global financial crisis.
The increase in output will also enable Tsuneishi to meet the growing demand for carriers by local companies and overseas clients in Asia and Europe over the next few years.
“We want to further strengthen the shipbuilding industry of the Philippines through human resources development to equip local manpower with the necessary skills, and through the transfer of technology know-how from Japan,” Kono added.
Meanwhile, Kenji Kawano, Japanese director and overseas operations director of Tsuneishi Shipbuilding, said the company will deliver for the first time three vessels to Philippine companies by 2015.
Kawano said local companies are looking to acquire small ships 50 meters to 100 meters in length that were not produced previously in the Philippines.
Tsuneishi currently produces carriers about 200 meters long, which are the 35,000 to 180,000 deadweight metric ton types, according to Kawano.
For 2014, Tsuneishi Heavy Industries expects to increase its revenue to around P36 billion from about P30 billion in 2013.
Kono noted, however, that the company still has some way to go before reaching the previous high of P41 billion recorded in 2012, following a slowdown in orders.
Kono is optimistic about replicating this revenue level by 2017 and 2018 when Tsuneishi has increased its production capacity.
Over the last 20 years, Tsuneishi Heavy Industries has invested some JPY70 billion in the shipyard, delivered 193 ships including orders made in 2014, and generated revenue of around JPY600 billion.
The Philippines is the fourth largest shipbuilding nation in the world, and the Maritime Industry Authority (Marina) aims to make the country a major center for shipbuilding and ship repair.
On Tsuneishi’s 40th anniversary, it received from Marina the Timonel Award for Outstanding Maritime Entity.
