FBMA stops operations due to weak market

CEBU, Philippines -  FBMA Marine Inc., an Aboitiz-owned shipbuilding plant in West Cebu Industrial Park (WCIP) in Balamban, Cebu has stopped operation owing to weak ship building market in the world. 

FBMA chairman Roberto Aboitz said that Cebu is still a good place for shipbuilding business, but with the current economic situation, “it’s difficult to compromise the future.”

“We have stopped operations. Nothing has changed in the [economic] situation,” Aboitiz said. “We are now focused on moving our people to have employment somewhere else because they are very skilled like the welders and the fitters.”

Nearly two months after the company formally announced that it will be slowing down its operations as an aftermath of the global crisis, it is now intensifying efforts to assist nearly 200 remaining employees in finding jobs in other related companies.

FBMA initially laid off close to half of its work force in May this year because there were no more orders for the fastcrafts it is building. It has just delivered its last two crafts to Wrightlink, a UK company. The ferries will soon service the Portsmouth-Isle of Wright route in the United Kingdom this year.

Other workers have been contracted to work for Metaphil, the construction arm of the Aboitiz Group, while some have gone to work in other local or international shipyards, and even found jobs abroad, Aboitiz said on the sidelines during the 4th Aboitiz Future Leaders Business Summit held last week

FBMA started operations 15 years ago in Balamban town in western Cebu, specializing in fast passenger and utility vessels for clients abroad. Its clients included US Defense contractor Lockheed-Martin, Smit International and the UK Ministry of Defense as well as Rederij Doeksen, among others.

Although the company has stopped operations, Aboitiz said FBMA is still negotiating or communicating with bigger ship building companies to pursue possible partnerships. An option to sale the entire company including the facilities is also part of the plan.

“Cebu is still the best place to start a shipyard—a quality shipyard,” said Aboitiz adding that if the economy will show positive trend especially to the shipbuilding market, he will re-open FBMA.

However, he said that as of this moment, “it looks like it may still take a while.”

If orders start coming in, Aboitiz said they will still study the market before deciding whether or not to resume shipbuilding operations.

But he remained optimistic amid a “gloomy” year for the global shipbuilding industry, saying Cebu continues to find its niche in constructing world class vessels.

“Cebu is still the right place to have a shipyard and the best place for quality manufacturing. We are still in touch with other shipyard owners around the world and we informed them to invest in Cebu,” he said.

The first vessel constructed by FBMA was a 50-knots 45-meter Tricat for the Hong Kong-Macau route.

Since 1997, the company has delivered 22 vessels to different countries such as Europe, United States, Australia, and some parts of Asia.