AFTER experiencing internal problems involving management and logistics, a homegrown export company that manufactures marine furniture is now enjoying a growing number of orders from shipbuilders.

Cebu Marine Furnishing Industries Inc. (CMFII) continues to tap the domestic market and is starting to expand its client base to shipbuilders in the United States.

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CMFII general manager and factory operation head Gil S. Hilayo Jr. attributed the company’s growth to aggressive marketing and its efforts to streamline production processes.

“We don’t want to lose our market because of lack of efficient client-management system in the past. Being a Filipino company producing furniture for big shipbuilding companies across the world, we have to do more, especially in terms of quality, to get the attention of more potential international clients,” he told Sun.Star Cebu.

CMFII started as a backyard furniture business of the Hilayos before a Japanese shipbuilding company—Tsuneishi Forestry Construction Co. Ltd.—proposed a joint venture. Under the joint venture, T & H Furnishing Industries Inc. started operations in November 1995.

But conflict arose between the Hilayos and the Japanese management team hired by Tsuneishi, which led to end of the joint venture last April.

Hilayo said that his family saw the potential of exporting marine furniture and decided to continue the business, which employs around 150 workers.

Last May, the company—now known as CMFII—was registered with the Securities and Exchange Commission and with the Philippine Economic Zone Authority as an economic zone export enterprise. Its 2,000-square-meter plant is located at the Mactan Economic Zone 2.

CMFII makes custom-built furniture—tables, chairs, sofas, beds, navigation desks, wardrobe and medicine boxes—for ships. Its clients include Tsuneishi Shipbuilding Co. Ltd. (Japan), Tsuneishi Heavy Industries (Cebu) Inc., Samsung Heavy Industries Co. Ltd. in Korea and FBMA Marine Inc., which manufactures fastcraft vessels in Balamban, Cebu.

Using imported raw materials from Europe, it also manufactures steel furniture, as well as curtains and upholstery. It also
undertakes the outfitting works of ships that will be built by Sub-See Philippines Inc. at the Cebu Yacht Club.

This year, it will be working on more than 30 orders from US, Europe and other parts of Asia.

The company’s former investor is now its distributor in Asia while Norac Marine Furniture A/S is its distributor in Europe.

“We will also be tapping the local market, including inter-island shipping companies,” Hilayo said.

Since shipbuilders have reported declining orders, CMFII—whose closest competitors are based in China—is eyeing companies that are engaged in maintaining and refurnishing existing ships.