Japanese Shipbuilders Encouraged to Invest in Philippine Shipbuilding Sector

The Philippine Government is offering tax benefits and  duty free importation of capital equipment for investors in its shipbuilding sector, which is one of its preferred industry branches under the Investment Priorities Plan (IPP).

As a result, the Philippine department of trade and industry (DTI) has  identified nine Japanese shipbuilders as potential source of funding those being Mitsui Engineering & Shipbuilding Co., Namura Shipbuilding, Sanoyas Shipbuilding, IHI Corporation, Kawasaki Heavy Industries, Mitsubishi Heavy Industries, Sumitomo Heavy Industries, Hakodate Dock Co., Imabari Shipbuilding, and Oshima Shipbuilding Co.,  Sea Trade Asia informs.

In the country’s intent to boost its shipbuilding sector aside to newbuilds, DTI also encourages investment in ship repair sector, shipbreaking and ship recycling.

The Philippines became the world’s fourth largest shipbuilding nation in 2010, behind South Korea, China and Japan, with respect to newbuilding completion volume, which was made possible due to the shipyards’ enlarged  construction capacities.

The leading shipyards  in the Philippines are Japan’s Tsuneishi Heavy industries (Cebu) Inc. (THICI) in Balamban, Cebu operated by Tsuneishi Holding Corp. and South Korea’s Hanjin Heavy Industries and Construction (HHIC Philippines established by HHIC at Subic Bay, according to globalsecurity.org.

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Shipbuilding Tribune Staff, January 07, 2012