Japanese shipbuilder Tsuneishi Heavy Industries (Cebu) Inc. is expanding the production capacity of its shipyard in Balamban, Cebu to boost annual revenues to P36 billion in 2014 and make it as the largest facility in Southeast Asia.
The company, a joint venture between Tsuneishi Group Shipbuilding Inc. of Japan and Aboitiz Equity Ventures Inc., with 80-percent and 20-percent stake, respectively, aims to raise annual production from an average of 12 ships over the last 19 years to 21 ships this year, ranging from 35,000-tonner bulk carriers to 180,000-tonner cargo vessels.
It said beyond 2015 and 2016, it would further expand capacity to build 25 to 30 vessels a year.
“In about 20 years, we see ourselves as the ‘mother shipyard’ among Southeast Asian countries and this part of Cebu [Balamban] as the shipping capital of the Philippines,” Tsuneishi Heavy Industries president Hotoshi Kono said in a news briefing Monday at the Makati Shangri-La Hotel.
Tsuneishi Heavy Industries, which created 13,261 direct and indirect jobs in the Philippines, said it would also start selling ships to domestic shipping companies, by manufacturing smaller 35,000-tonner vessels. The company already has orders for three vessels for interisland shipping.
The company invested P30.4 billion over the last 20 years, which saw four expansion modes. It currently operates two slipways and one dockyard in Balamban, Cebu, inside a Philippine Economic Zone Authority-managed economic zone.
Revenues in 2013 fell to less than P30 billion from P41 billion in 2012, as the shipbuilding sector was adversely affected by the economic slowdown in the US and Europe.
Tsuneishi Heavy Industries said it expected revenues to replicate the 2012 revenues by 2017 or 2018.
Tsuneishi Heavy Industries said while it also had shipyards in China and Japan, the Cebu shipyard was the only facility capable of making 180,000-tonner bulk carrier.
Aside from its shipyard, Tsuneishi also brought nine parts suppliers which were mostly Japanese and Filipino companies.
Tsuneishi’s ships ply the seas of Brazil, Japan, Europe, China and Singapore.