Tsuneishi expands Cebu yard

Cebu-based shipbuilding company Tsuneishi Heavy Industries Cebu Inc. (THICI) has committed to invest $ 100 million in the expansion of its shipyard in Balamban town in Cebu’s western seaboard. THICI, a joint venture between Tsuneishi Corp. of Japan and Aboitiz and Co., has been building 58,000 dwt bulk carriers since 1995.

The expansion was triggered by the upsurge in the shipbuilding industry, with the expected growth in the global movement of goods, particularly to and from China. The additional investment would cover the construction of two more docks for ship building.

Under the expansion plans, the company would add another 86 hectares to its current work area of 40 hectares at the West Cebu Industrial Park in Balamban, Cebu. The expansion will enable THICI to build bulk carriers up to 170,000 dwt and almost double its production capacity from 14 ships a year to 24. The expansion would also mean the hiring of an estimated additional 4,000 skilled workers on top of its current work force of 2,000.

Construction work is expected to start early next year for completion in 2010.