Balamban, Cebu – Tsuneishi Heavy Industries (Cebu) Inc., the local unit of the world's leading shipbuilder – Tsuneishi Group of Japan, has warned the Philippines could lose its cost competitiveness for failure to develop the domestic support industries.
This was stressed by Tsuneishi Technical Services (Phils.) Inc. General Manager Engr. Segismundo Exaltacion Jr. during a press conference here for the company's 20th anniversary celebration.
According to Exaltacion, THI has only 5 percent local content, which only includes locally sourced minor steel fittings.
Exaltacion said though that THI is still very cost competitive against Japan and China because of its efficient operations and labor cost arbitrage.
But he also warned the shipbuilder could lose that cost arbitrage for failure to improve value addition.
"We don't want to save cost because of human resources," Exaltacion said adding that majority of their premium steel requirements are imported from Japan, which can supply the certified steel requirements for shipbuilders. In the first place, the Philippines has no steel manufacturing industry to speak of.
He noted that the Philippines ranked world's fourth largest shipbuilder in 2010 in terms of ships delivered but it has been dislodged by Brazil lately.
Exaltacion said the domestic shipbuilders need steel plates manufacturer and licensed engine maker, which require huge capital investments.
"Imagine if they locate here and supply to Tsuneishi that is indirect export because we are registered with the Philippine Economic Zone Authority," said Exaltacion.
Thus, he said, the government should push for investments in ship building support industries because that will attract more shipbuilders to locate here.
"That support issue is beyond our control, what is within our control is to develop innovative ships. That is why we are trying to offset what is beyond our control with what is controllable,"" he added.
He added that it us good to be apprehensive of the future so they will work harder. He said there should be no room for complacency so as not to lose competitiveness.
"It is a warning for everyone," he added.
In a separate interview, THI president Hitoshi Kono said the company has already contracted to build 60 ships until 2017 as the shipping industry has started to recover from a slump.
THI, a joint venture of Tsuneishi Group of Japan and Aboitiz Equity Ventures, plans to build between 25 to 30 ships yearly that will transform its 147-hectare facility here as the country's shipbuilding capital and ASEAN region's hub by 2020.
With that, THI expects its revenues to correspondingly increase after achieving P250-billion revenues. Kono did not divulge the company's revenue generation forecast.
To highlight the company's 20th anniversary, THI named the SC-226 M/V Capricorn Trader (Kamsarmax bulker) as the 193rd ship launched by this Cebu-based shipyard.
The company has also launched four new ship models, namely TESS35, a 35,300 DWT (deadweight metric ton) bulk carrier: TESS45BOX a 45 DWT bulk carrier with an overall length of 184 meters; TESS58, an Eco ship; and TESS64 Aeroline which is 20 percent energy efficient than TESS58.
The company, which employs around 14,000 people, also vowed to produce economical and environment-friendly ships.
The goal is to reduce carbon emission of its ocean-going vessels by 40 percent in 2020 from the current more than 20 percent.
source:
https://ph.news.yahoo.com/tsuneishi-...190432168.html
Tsuneishi raises concern over poor local shipbuilding support industries
. Kani sad unta'ng biz men nga naa sa Forbes List mo-invest unta into industrial manufacturing business para maka -create ug addtional employment opportunities dili lang kay puro's grocery bagger, sales person, janitors, ug uban pang trabahante sa malls ang kanunay ma-hire.
Originally Posted by crossramz
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