Wednesday, 11 February 2009

Japanese shipbuilder plans Philippine P12-B expansion

The Manila Bulletin

Tsuneishi Heavy Industries, (Cebu) Inc. (THICI), one of the leading medium-sized shipbuilders in the world, is investing P12 billion to expand its existing Cebu operations to include the manufacture of all types of cargo vessels that would employ 3,000 workers.

The project has been approved by the Philippine Economic Zone Authority (PEZA) entitling it to tax and fiscal incentives.

PEZA Director-General Lilia B. De Lima cited the third expansion project of Tsuneishi saying it is a break to all the bad employment news that occurred recently. At present, Tsuneishi directly employs 5,800 workers.

For its expansion program, the company will manufacture all types of cargo vessels with capacity of up to 250,000 DWT such as bulk carriers, container ships, oil tankers, reefer ships, and pure car and truck carriers.

The expansion also includes the acquisition of 90 hectares of property. Its PEZA application says the Cebu subsidiary will also be involved in leasing activity.

Originally, Tsuneishi was registered with the Board of Investments in September 1998 under a local unit Tsuneishi Heavy Industries Cebu Inc. to operate a shipbuilding of bulk carriers and ship repair facilities at the West Cebu Industrial Park in Balamban, Cebu with an initial investment of P158.240 million.

THICI ships out medium sized vessels to different parts of the world targeting Japan and Europe as its markets.

Other company’s other activities include the fabrication of ship parts and engineering works.

The company, however, decided to transfer its registration with the PEZA.

Tsuneishi first expanded its operation in August 2004 with P808.12 million worth of investments to construct a second slipway which to increase its production capacity for shipbuilding and ship repair.

To date, a total of 32 Bulk Carriers have already been built at THICI’s shipyard.

THICI offers the following ship repair services: dry-docking, afloat repairs, cleaning, blasting and painting, damage repairs, electrical and mechanical repairs

For 2008, Tsuneishi Cebu posted $ 886.813 million exports.

It has an authorized capital of P300 million, subscribed of P300 million and paid-up of P300 million.

The company is a joint venture between Tsuneishi Holdings of Japan with 80 percent shareholdings and 20 percent by the Filipino-owned Aboitiz & Co. Inc.

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