Wednesday, September 12, 2007 THICI orders good for 2011
IF THE number of orders received by a shipbuilding company in Balamban, Cebu is an indication of growth, the projections made earlier by the National Economic and Development Authority (Neda) 7 are becoming a reality.
Steve Paradies, Aboitiz Equity Ventures (AEV) senior vice president and chief financial officer, said Tsuneishi Heavy Industries Cebu Inc. (THICI) have orders to fill until 2010 to 2011.
“Even with the expansion (of Tsuneishi), the orders go (all the way) to 2010 and 2011,” he said in a press briefing last Monday.
Madelyn Escandor of Neda 7 told participants of the 4th Sun.Star Economic Forum last month that shipbuilding is one of the potential growth areas in Cebu.
THICI, one of the member companies of AEV, plans to expand its shipyard to enable it to build ships of up to 180,000 dead weight tons (DWT).
At present, THICI, a partnership of Tsuneishi Group of Japan and the Aboitiz Group, has the capability of building ships of up to 80,000 DWT.
Paradies said, though, that THICI and sister company FB Marine Aboitiz are having difficulties keeping workers, particularly welders, as there is a high demand for individuals with welding skills in Australia.
“It’s very hard to match the salaries offered by overseas companies,” he said. He added that the company is trying to improve the salaries and benefits of workers but many still opted to go overseas to work where they get foreign-denominated pay.
He said with the expansion, THICI would need as much as 5,000 skilled workers.
To address the lack of skilled personnel, Paradies said THICI is working closely with the Technical Education and Skills Development Authority to conduct and expedite technical training courses for would-be workers.
Paradies said THICI, which began operations in 1994, produces about 14 large ships or bulk carriers a year. It reportedly employs about 4,000 people.
The expansion of the THICI shipyard will be conducted by sister company Metaphil Inc.
Roberto Aboitiz, Metaphil Inc. chairman and chief executive officer, earlier said the expansion is projected to cost about $200 million.
According to the Neda 7 presentation during the Sun.Star Economic Forum last August, Tsuneishi’s exports from 1997 to 2006 reached a total of $1.207 billion while FB Marine’s exports reached $105.06 billion between 1997 and 2007.
Meanwhile, AEV executive vice president and chief operating officer Erramon Aboitiz said the proceeds from the public offering of Aboitiz Power Corp. (AP) will be used to fund AP’s acquisitions of power assets and projects.
AP, one of the companies under AEV, conducted an initial public offering last July.
Aboitiz said the offering has earned about P10.8 billion. In yesterday’s trading, its stocks closed at P5 per share.
“The market is a little disappointing at this time,” he said in the same press briefing. “But we’re hoping it will get better.” (LAP)
