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Shipbuilding

Tsuneishi Outlook 2015

Tsuneishi Heavy Industries (Cebu), Inc. (THI) is one of the nation’s biggest success stories in terms of the great teamwork between the Filipinos and Japanese. Since conception, we have been achieving milestone after milestone, and in 2014 we marked our 20th anniversary.

THI has been recognized with multiple awards on several occasions in 2014, for both philanthropic activities and product quality. Such awards include Hall of Fame Award for Outstanding Community Project, Outstanding Exporter Award, and Timonel Award for Outstanding Maritime Entity from MARINA (Maritime Industry Authority). We also received the Highest Distinction in “A Tribute to Cebu’s Business and Investor’s Night” from the Cebu Chamber of Commerce & Industry during Cebu Business Month. We were recognized by the government through the Philippine Economic Zone Authority for our regional contribution in terms of employee’s welfare, community and environment projects, and economic development contributions.

With our strong workforce of 13,000, the company delivered 20 vessels in 2014: one TESS45 box-type bulk carrier (45,000 deadweight metric tons [DWT], seven TESS58 bulk carrier (58,000 DWT), 10 82,000 DWT-type bulk carriers, and two 180,000 DWT-type bulk carriers. This year, THI is set to deliver 18 ships: Three D/W 35,300 MT type, seven D/W 58,000 MT type (three of which are TESS58 Aeroline), seven D/W 82,000 MT Kamsarmax type, and one D/W 180,000 Cape-size bulk carrier.

2015 OUTLOOK

With the company’s experience and capacity, THI will continue to capitalize on the country’s growth and become the “mother” shipyard among Southeast Asian countries, and to be the Shipbuilding Capital of the Philippines.

Productivity-wise, we want to increase our shipbuilding capability by building more ships in the future (that is, 25 to 30 ships) and maximizing facilities to meet the growing demand for bulk carriers in the next few years to include not just foreign clients but local clients as well, in order to get higher revenues and a stable business.

In line with this, THI aims to complete the construction of three new ship models: the TESS45 box-type, the TESS58 Aeroline, and the TESS64 Aeroline. The TESS45 box-type is a ship model in the 1990s known for its versatility, re- developed to have a more compact box shape. Its first order was successfully delivered in 2014. The 35,300 DWT-type, handy-size bulk carrier is expected to be delivered in 2015. Meanwhile, the TESS58 Aerolines, and TESS64 Aeroline are equipped with wind resistance reduction and other new technologies to increase fuel efficiency by 13% and 20%, respectively, in comparison with conventional TESS58 models. THI’s first TESS58 Aeroline was launched in December 2014 and will be delivered this March, while the TESS64 is targeted to be delivered in early 2017.

THI aims to strengthen the shipbuilding industry of the Philippines, further develop human resources education, and equip our team members with the necessary tools and skills of shipbuilding through technology and know-how transfer from Japan, such as dispatching our team members to our mother company in Japan. We aim to develop their engineering, technical, as well as administrative skills as we initially create an in-house shipbuilding academy, as well as attract new talents.

As THI is developing as Asia’s leading shipyard, with the shipbuilding facilities, technology, and skills ready, we face the challenges of the shipbuilding market demand in the Philippines and other Southeast Asian countries as well.