Shipbuilding firm sets US$ 100M expansion of Cebu facility

Cebu-based shipbuilding company Tsuneishi Heavy Industries Cebu Inc. (THICI) has committed to invest US$ 100 million or roughly P5 billion in the expansion of its shipyard in Balamban town in Cebu’s western seaboard.

THICI, a joint venture between Tsuneishi Corp. of Japan, one of the world’s leading shipbuilders, and Aboitiz and Co., has been building 58,000 deadweight-ton (dwt) bulk carriers since 1995.

These ship were sold around the world from their Japan base.
THICI director Roberto E. Aboitiz said the expansion was triggered by the upsurge in the shipbuilding industry, with the expected growth in the global movement of goods, particularly to and from China.

Aboitiz said the additional investment would cover the construction of two more docks for boat building.

Under the expansion plans, the company would add another 86 hectares to its current work area of 40 hectares at the West Cebu Industrial Park in Balamban, Cebu.

The expansion, Aboitiz said, would enable THICI to build bulk carriers as big as 170,000 dwt from 58,000 dwt and almost double its production capacity from 14 ships a year to 24.

Bulk carriers of this size, designed to carry goods such as fertilizers, grains, ore and others, can travel long distances and are almost the same size as crude carriers.

Aboitiz said the expansion would also mean the hiring of an estimated additional 4,000 skilled workers on top of its some 2,000 workers.

He said THICI’ sales would hit one billion US dollars a year with the expansion. He said construction is expected to start early next year for completion in 2010.