In Balamban, Cebu, Aboitiz launches new facility

The looming effects of the global economic slump have not stopped Aboitiz Construction Group Inc. (ACGI) to officially launch its P540 million Metaphil International Inc.’s Fabrication and Outloading Facility.

Located at the 10-hectare property at the West Cebu Industrial Park (WCIP) in Balamban, the facility is referred to as a modular yard as it is primarily intended to build fabrication modules. It is capable of building fabrication modules weighing 600 tons per module, with fabrication capacity of 18,000 tons per year.

ACGI Metaphil division chairman and chief executive officer (CEO) Roberto E. Aboitiz said that although the company is projecting a decline of orders next year, due to the global economic meltdown, the company’s investment is built for long term view, “we continue to do business in the future.”

This early, Metaphil International the maker and exporter of mining and oil refinery pre-fabricated plant devices, has already felt the effect of the global economic downturn by experiencing movements or postponement of order deliveries to different countries.

Orders which valued a total of P2 billion which was originally scheduled to be delivered by third and fourth quarter of this year, has been moved to next year, due to clients’ plan adjustments.

Despite these challenges, Aboitiz said the opening of its big fabrication yard is its core shield to fight tough competition, and send a message to the world, the Philippines is up to produce world-class and cost-efficient mining and oil refinery pre-fabricated devices.

“This is our growth platform in the next 30 years. Not just fabrication but engineering and detailing works, also,” Aboitiz said.

In this kind of industry, the Philippines, is closely competing with countries like Thailand, Korea and Vietnam. Aboitiz said with this expansion, Metaphil is strengthening its capability, re-enforcing its reputation as low cost producer of these kinds of products.

“This is a very competitive industry. We had our fair share of losses and gains. Upfront, it’s a business that we have to earn,” Aboitiz said.

Clearly, he said the company is expecting a slowdown of orders by next year. However, he said this has not stopped Metaphil International from preparing to be ahead, amid the difficult times.

In fact, he said although there are postponements in the delivery schedules Metaphil is now at serious discussions with international prospects to fill up the plant’s operations as soon as possible.

Metaphil’s old plant in Mandaue City is employing over 2,000 people. With the opening its fabrication yard in WCIP, Metaphil will need additional 1,000 skilled workers to man the facility such as welders.

“With this new facility, we are ready to turn Cebu into major engineering and fabrication center [in the world],” Aboitiz said.

The company is eyeing millions of dollars exports to Australia, New Caledonia, USA, and other countries, through the world-class mining companies such as Outotec Pty. Ltd., Metso Minerals (Australia) Ltd., Delkor Pty. Clyde Bergemann Materials Handling.

ACGI’s large international clients include Technip, Inc., Dow Chemicals, Inc., and Fluor Daniel.

Metaphil International Inc., is the international construction arm of the AGCI that specializes in modular fabrication works, design, installation or turnkey basis, Electro-mechanical and civil projects, hull fabrication and engineering design devices.