Japan’s Tsuneishi set to boost production in Cebu

Japan’s Tsuneishi Shipbuilding Co. Ltd., one of the world’s biggest shipbuilders, is increasing the production capability of its facility in Cebu, which is being developed to become the “mother shipyard” in Southeast Asia.

Hitoshi Kono, president of local unit Tsuneishi Heavy Industries (Cebu) Inc., said the Philippines had great potential to further grow its robust shipping industry with the expansion of Tsuneishi’s operations in Cebu.

“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,” Kono said. “We want to strengthen Philippines’ role as a (shipbuilding) hub in Asia.”

According to Kono, the plan is to increase the shipbuilding output in Cebu to as many as 30 vessels yearly starting 2017 or 2018, from the current level of 21 ships yearly, by “increasing productivity and maximizing facilities.”

The increase will enable Tsuneishi to meet the growing demand for carriers over the next years, from clients in Asia and Europe as well as local companies.

“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.

Kenji Kawano, Japan director and overseas operations director of Tsuneishi Shipbuilding, disclosed that the company would deliver for the first time three vessels to Philippine companies by 2015.

He declined, however, to identify these firms.

According to Kawano, local companies were looking to acquire small ships measuring 50 to 100 meters long 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, he added.

This year, Tsuneishi Heavy Industries expects its revenues to hit some P36 billion, an increase from about P30 billion posted in 2013.

Kono noted, however, that the company still had some way to go before reaching the previous high of P41 billion recorded in 2012, following a slowdown in vessel orders.

He was optimistic that the company would again hit this revenue level by 2017 and 2018, as soon as Tsuneishi increases its production capacity.

Over the last 20 years, Tsuneishi Heavy Industries has invested some 70 billion Yen (roughly P30 billion), delivered 193 ships including orders made in 2014, and generated revenue of around 600 billion Yen (approximately P250 billion).