S'pore seen remaining as ship repair center<\/p>\n
SINGAPORE (Reuter): Takeshi Tenjin, the executive chairman of
\nHitachi Zosen Singapore Ltd, said he was confident geography and
\ninfrastructure would ensure Singapore's role as key ship repair
\ncenter, especially for tankers.<\/p>\n
He dismissed concerns of challenges from other regional
\ncenters like Indonesia or the Philippines, where yards remain in
\ninfant developmental stages.<\/p>\n
However, he did not dismiss the possibility of Hitachi looking
\nfor an alternative repair yard to Singapore due to rising labor
\ncosts.<\/p>\n
Ship repairer Hitachi Zosen Singapore is expanding
\nshipbuilding capacity to complement its core ship repair business
\nand sees no need for mergers to compete with local yards, a top
\nofficial said yesterday.<\/p>\n
\"We are trying to engage more heavily on shipbuilding but
\nshiprepair will still be our core business,\" Tenjin told Reuters
\nin an interview.<\/p>\n
He was unfazed by the proposed merger of two local yards --
\nSembawang Corp Ltd and Jurong Shipyard Ltd.<\/p>\n
The merged company would have more than half the market and
\nnine dry docks, making it one of the world's largest repair
\nfirms. Tenjin said his strategy was different.<\/p>\n
\"The company's policy is not to be the biggest. Turnover is
\nnot our target but to provide good, quality services to our
\nclients and grow from there,\" he said.<\/p>\n
\"I have no intention to merge or form alliances with anyone,\"
\nhe said, dispelling market rumors Hitachi, the smallest of the
\nBig Four yards here, would need to merge to survive the keen
\ncompetition in Singapore.<\/p>\n
Ship repair now contributes 75-80 percent of the group's total
\nrevenue. But Tenjin said this would change once its Singapore $15
\nmillion berth extension was completed next week.<\/p>\n
The extension of the slipway to 230 metres (250 yards) from
\n127 metres (139 yards) would allow the yard to build bulk
\ncarriers of up to 30,000 dwt.<\/p>\n
Hitachi, a subsidiary of Osaka-based Hitachi Zosen Corp
\n[7004.T], is now engaged mainly in ship repair but has a building
\ncapacity for product carriers of 7,900-9,900 tons.<\/p>\n
\"When the slipway project is completed, ship repair will
\ncontribute about 60 percent while shipbuilding 35 percent,\"
\nTenjin said. The remaining five percent would come from
\nindustrial engineering-related businesses.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/spore-seen-remaining-as-ship-repair-center-1447893297",
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"sponsor": "Okusi Associates",
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