Thursday, July 10, 2008 Gas company eyes semiconductor industry, double growth in 2010
A LOCAL industrial gas producer aims to double its growth rate in 2010 as it continues to tap new markets within the Visayas and Mindanao.
In 2010, Southern Industrial Gases Philippines Inc. (SIG) also expects to fully operate its air separation unit, allowing the company to produce its liquid gases locally.
At present, liquid gases distributed to SIG clients in the Visayas and Mindanao are still being sourced from its sister company in Luzon, said general manager Tristan Dumlao yesterday during the inauguration of the company’s new office in Mandaue City.
The Mandaue City office will serve as SIG’s headquarters for the Visayas and Mindanao operations.
Dumlao said SIG’s two biggest markets are the shipbuilding and healthcare industry, but the company is also looking at penetrating the semiconductor sector, most of which are based in economic zones.
With 20 distribution sites across the Visayas and Min-danao areas, SIG holds 45 percent of the market in this P4-billion industry.
Cebu customers account for 30 to 40 percent of the SIG’s Visayas and Mindanao operations.
For the first six months this year, Dumlao said the company has grown between nine and 10 percent, compared to its competitors.
The company also hopes to achieve sales of P700 million by the end of this year.
Although SIG is “doing okay,” Dumlao said the company also faces challenges similar to others in the industry.
Dumlao said that although the new plant, located in Balamban, Cebu, will only employ about 30 engineers, the company would find it challenging to get qualified personnel because of the high demand for engineers abroad.
Growth in the shipbuilding and the business process outsourcing industries has also raised demand for engineers from varied disciplines, he added.
“There are also challenges when it comes to compliance with standards,” Dumlao said, adding that this is prevalent in the industry.
Rising fuel prices have also affected the industry but Dumlao said SIG will not increase its prices. (DME)
