14 Juli 2011
JHSV for USNavy ships (photo : Austal)
Aussie Firm to Create 2,000 Balamban Jobs
An Australian shipbuilding company, Austal, will soon build US Navy ships in Balamban town, west Cebu.
The operation will generate at least 2,000 jobs in the town, said Cebu Provincial Board Member Alex Binghay, who is Balamban’s former mayor.
Austal, which manufactures aluminum-hulled vessels, has started developing a part of the site of FBMA Marine Inc, an Aboitiz-owned shipbuilding plant inside the West Cebu Industrial Park in Balamban.
Binghay said Austal signed a $10-billion contract with the United States Navy to build military support ships and would sign an agreement with the municipality of Balamban within two months for the formal operation of the firm in Cebu.
He said this would be a “big investment” for the town.
Officials of Austal visited Balamban town last Saturday to discuss site developments.
Austal also reached an agreement with FBMA on the use of part of its facility.
Since the site is in an export processing zone, two percent of the gross income of Austal will go the municipality, said Binghay.
Binghay said one ship manufactured by Austal would cost at least $100 million while three percent of the gross income would also go to the national government.
Austal is a member of the Australian Association of Shipbuilders.
Other products of Austal include high-speed passenger and vehicle-passenger ferries, cruise vessels and a range of patrol, fast freight and offshore support vessels.
Balamban is also home to Tsuneishi Heavy Industries Inc., another ship building firm which employs 14,000 highly skilled workers.