The government is pursuing prospects for new shipbuilding projects from Japan after the Department of Trade and Industry (DTI) conducted an investment mission there where they met interested Japanese shipbuilders.
DTI Undersecretary for trade and investment promotions group Cristino L. Panlilio told reporters they gathered some prospects for new shipbuilding projects during its meeting with members of the Japanese Shipbuilders Association.
According to Panlilio, the Japanese shipbuilders have been encouraged by the successful operation of Tsuneishi Corp. in its Philippine operation under its local unit Heavy Industries (Cebu), Inc. (THICI) and Keppel Shipyard.
"Different provinces have offered sites for shipbuilding projects. Of course, Subic Freeport still has enough land in the Redondo Bay to accommodate other shipbuilders," Panlilio said.
Tsuneishi employs about 11,000 people and now building huge cargo ships of about 180,000 tons.
Tsuneishi is one of the medium-sized shipbuilders in the world. It leads several shipbuilding companies operating in Cebu.
Recently, Tsuneishi invested P12 billion to expand its existing Cebu operations to include the manufacture of all types of cargo vessels and generate 3,000 new jobs opportunities.
The biggest shipbuilding operation in the country is Korea’s Hanjin Heavy Industries, which has put up a shipbuilding operation on a 600-hectare complex in Subic Freeport under its local unit Hanjin Heavy Industries & Construction – Philippines, Inc. (HHIC-Phil, Inc.).
The entry of Hanjin, the world’s largest shipbuilder, has catapulted the Philippines into the world’s fourth largest shipbuilder. Its Subic operations employ 20,000 people.
Since its first vessel delivery in 2008, the Philippine unit has already accumulated worth P125 billion in annual export sales as of the end of 2011.
Shipbuilding is one of the government’s preferred industries identified under the Investment Priorities Plan (IPP) plan entitling projects to income tax holidays and duty-free importation of capital equipment. Shipbuilding activities include the construction and repair of ships and ship-breaking.
Source: Manila Bulletin