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Australian boat builder transfers manufacturing center to PH

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Australian military and commercial boat builder Austal has chosen the Philippines as the future center of its global manufacturing operations, taking advantage of competitive labor costs that do not sacrifice the quality of work.

The company, which leads globally in the production of high-speed catamarans, said it would soon start exporting state-of-the-art vessels out of its newly acquired facility in Balamban, Cebu.

“It has become uncompetitive for us to build these ships in Australia. It’s our intention to systematically and progressively transfer the technology from Australia into the Philippines so it is our center of excellence for all things commercial,” Austal CEO Andrew Bellamy said in a recent interview.

The Balamban shipyard is the company’s third location.

“We chose the Philippines because of its high level of growth, the English-speaking population that has the right skill set and work ethic, and the country’s location is also an obvious take-off point for our Asian-centric expansion,” Bellamy said.

The company’s oldest facility is in Perth, Australia, where the bulk of commercial vessels are made.

Among the notable ships the company has delivered are the passenger ferries used for trips between the Chinese cities of Macau and Hong Kong.

The company also has car and passenger vessels operating inter-island routes in Greece.

Austal’s second location is in Mobile, Alabama, by the Gulf of Mexico. The United States shipyard focuses on ships for defense. The company has been building warships for the US Navy since 2006.

The company specializes in catamarans and “trimarans,” which have several thin hulls that are able to cope with rough sea conditions.

The company has about 200 employees working in Balamban, with a firm plan to hire 150 more people. Being built in Balamban today is a 27-meter three-hull trimaran—the first of its kind Austal has ever built—that will be used by wind-farm operators in Europe.

Bellamy said the Balamban facility, which the company bought from the Aboitiz group for $8 million last year, could end up employing thousands of employees, if demand stays strong.

“This is about building a long-term manufacturing capability in the Philippines that will be industry-leading and sustainable,” Bellamy said.


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Short URL: http://business.inquirer.net/?p=73513

Tags: Austal , Australia , boat building , Business , marine transport , Philippines

  • asusina

    This is great news. The Philippine government should do more to encourage Australian companies to set up manufacturing facilities in the Philippines. 

    A few days ago, it was reported that the Bangko Sentral pledged $1 to the IMF to help the global economy. 

    Hopefully, the Philippines can offer more loans to other countries under the condition that they use it to purchase Philippine-made products and/or hire the services of Philippine-based companies. It would be very good if global demand for Philippine goods & services would grow, resulting in more jobs for Filipinos in their own homeland, instead of having to go overseas far from their love ones.

    God bless the Philippines!

  • http://www.facebook.com/people/Jonathan-Otida/100000956694875 Jonathan Otida

    If indeed this company manufactured a war ship,then why not build a war ship for the Phil.Navy and a squadron of support ship could be small but can carry a missile or rocket than can sink a ship like the one being station near spratly and panatag shoal…DOST,AFP,PCG,..Its now time to have our owned Phil.made war ship…

    • Platypus09

      I absolutely agree.

      Gone are the days where get ships are made in Japan and purchased from other foreign countries.

      This could be a dream come true for us, Filipinos.

      God willing!!

  • http://pulse.yahoo.com/_GG4T5UNZ3P7SCHSRNJ7PF5JZMM Jimmy

    Bakit ang Phil Navy ay hindi makipag-ugnayan dyan sa mga gumagawa ng mga barko para makagawa ang Pilipinas ng mga maliliit pero mabibilis na mga bangkang pandigma..! Sa luwang ng ating mga dalampasigan ay kailangan na kailangan natin ang mga bangkang pampatrulya at pantulong sa oras ng search and resue operations..!!!!

    • Platypus09

      Shipbuilding here in our country not only boosts our economy, but it will give us opportunities on seeing how ships are being built.

      This industry employs lots of people as long as they get orders of ships and other maritime vessels. Yes, Philippine Navy should start modernizing it’s fleet as well as Philippine Coast Guard.

      Ships can be built here in our country and we can be very proud of that. As long as our government allots a minimum of two sophisticated vessels per year to be built, that will make a difference in local Cebu economy and the Navy itself.

      This is good for Cebu. Good for Phil. Navy. And good for the Philippines.



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