Austal completes acquisition of Philippines shipyard

Austal has acquired the former FBMA Shipyard at the West Cebu Industrial Park in Balamban, Cebu, Philippines.

It has paid A$7 million to acquire the shipyard and will invest a further A$5 million to upgrade the facilities.

In a presentation at its annual meeting (see earlier story) Austal said the decision to buy a yard in the Philippines is a response to the strength of the Australian dollar. Austal plans to focus its Australian shipbuilding facilities on the defense sector. It says it will continue to develop new products for emerging markets, to be constructed in regional manufacturing facilities, that would potentially include manufacturing in Europe.

Austal plans to start production at the Cebu shipyard in the first quarter of 2012, depending on order intake, and will initially employ 30 workers in the start-up phase. Future work force growth is expected in line with market conditions.

November 7, 2011