April 1977 - Maritime Reporter and Engineering News

Kawasaki/Philippines Form Company To Build Large Ship Repair Yard

A joint venture contract to construct and manage the largest ship repair yard in the Philippines has been signed between Col. G.F. Tanseco, director of the National Investment & Development Corporation of the Philippines, and Kiyoshi Yotsumoto, president of Kawasaki Heavy Industries, Ltd., in the presence of President F. Marcos.

The joint venture company will be established with a capital of $26.7 million this month. Construction of a 300,000-dwt dock is to start next year on a 150,000- square-meter site at Subic Bay, Luzon, and completion is scheduled for 1980.

Total construction cost will be about $68 million. At start-up, the yard will employ about 800 workers, but in full operation the payroll will swell to 1,500, of which about 70 will be engineers and other staff from Kawasaki.

Designed to improve the nation's trade balance, promote industrialization and increase employment opportunities, construction of the dock has been given high priority by the Philippine Government.

Sixty percent of the joint venture's $26.7-million capital is to be shouldered by a governmental enterprise, the National Investment & Development Corporation, an investment subsidiary of the Philippine National Bank. The remaining 40 percent will be handled by Kawasaki. The capital is expected to be increased to $31 million in the near future.

The new ship repair company will have a Filipino president and a Japanese vice president, in accordance with each party's capital shares. Company funds, other than the initial capital, are to be procured by the Overseas Economic Cooperative Fund of Japan.

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