Rebrand, Renew, and Reinvigorate: ACI Milestones and Fresh Prospects
With our commitment to grow the business and to create shared value to the Aboitiz Group, we rebranded the company into Aboitiz Construction, Inc. (ACI) and established our international arm, Aboitiz Construction International, Inc. (ACII). With these, we are able to leverage on the Aboitiz brand while strengthening our industry foothold and offering our value proposition of Reliability, Integrity, Safety, and Quality (RISQ).
This milestone change in our company has allowed us to engage our group and non-group clients with renewed energy, raising our open orders to 80 percent by the end of 2017. A substantial 90 percent of these open orders is expected to contribute to the company’s 2018 revenues.
We are very much proud of our capability to provide local jobs while we pursue our growth potential in the Engineering and Construction industry, allowing us to truly manifest the Aboitiz brand promise of Advancing Business and Communities.
2018 Outlook
The research arm of the Fitch Group has forecasted that the Philippine construction industry will steadily expand over the next 10 years, with Chinese and Japanese firms largely benefiting from greater investments and project opportunities. The report also said that the Philippines’ construction industry will steadily expand at an average real rate of 9.8% between 2017 and 2026. The research unit expects construction, engineering, and heavy industry firms from China and Japan to benefit from the local infrastructure industry’s robust growth.
We, in Aboitiz Construction, are looking forward to this positive outlook. As a matter of fact, we kicked off 2018 with the facility expansion of a shipbuilding company in Cebu and modular fabrication work for a plant in Canada. And the lineup of projects continues, like the completion of a power plant in Sarangani, a petrochemical plant in Bataan, The Outlets in Lipa in Batangas, fabrication works for a Korean and a Japanese company, among others.
We are happy to report that we have processed more inquiries and requests for quotations from Japanese and Chinese firms, and from both new and repeat clients. Twenty-five percent of our 2017 open orders come from Japanese clients. Moreover, we are currently in negotiations with Chinese engineering, procurement, and construction (EPC) entities either as a joint venture partner, or a major subcontractor for their projects here in the country.
We are very much proud of our capability to provide local jobs while we pursue our growth potential in the Engineering and Construction industry, allowing us to truly manifest the Aboitiz brand promise of Advancing Business and Communities.
We will leverage on our existing Japanese and Chinese EPC partnerships to tap potential opportunities from the conversion of Public-Private Partnership (PPP) projects to Official Development Assistance (ODA) projects. We expect this high interest in our services to continue as opportunities for significant projects come along.
While we will have our hands full in executing the domestic and international open orders, we will also focus on increasing the company’s recurring income by expanding our maintenance works such as the ones we have been doing for a long time for the mining and shipbuilding industries.
The benefit of being part of the Aboitiz Group is the tremendous opportunity to synergize with strategic business units like Pilmico, Aboitiz InfraCapital, and AboitizLand, which have already the paved the way for new and recurring projects.
In these exciting times, we are geared up to innovate as we enter new and exciting markets. Throughout our existence and through many projects, Aboitiz Construction is known for our people, the kaubans*, who work together to achieve more. Each of our Kauban is armed with the proverbial bugsay (rowing oar) philosophy of the late Bobby Aboitiz, founder and the leader who molded what the company has become today. Aboitiz Construction will carry out the brand of excellence that will fuel us in our efforts to advance business and communities.
Alberto A. Ignacio Jr.
President and COO
Aboitiz Construction, Inc.
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*Note: ‘Kauban’ is a local term for teammate. It signifies people working together to achieve more.
https://abe-archive.sunday.ph/thi-outlook-2018/