November 4, 2014 6:06 am JST

Japan's Tsuneishi to build shipyard in Indonesia

SADACHIKA WATANABE, Nikkei staff writer

A Tsuneishi Holdings shipyard on the Philippine island of Cebu.

JAKARTA -- Japanese shipbuilder Tsuneishi Holdings will construct a shipyard in Indonesia in a bet that the planned economic integration of the Association of Southeast Asian Nations will boost demand for passenger travel and cargo shipping.

     The Hiroshima Prefecture-based company will team up with Kalla Group, a local company affiliated with Indonesia's vice president, Jusuf Kalla. The companies will sign a partnership agreement soon.

     The shipyard will be constructed in Pinrang on Sulawesi Island. At the earliest, it will begin repairing ships in 2016 and building them in 2019. Tsuneishi will become the first Japanese company to build a shipyard in Indonesia.

     Indonesia and other Asean members, such as Malaysia and the Philippines, are developing a maritime network that links islands using ships. The Japanese government is supporting these efforts through such channels as the Japan International Cooperation Agency. Joko Widodo, installed as Indonesia's president last month, envisions making his country a global "maritime axis."

     The new shipyard will be Tsuneishi's fourth overseas location. The company operates shipyards in China's Zhejiang Province and on the Philippine island of Cebu as well.

     Kalla Group runs a shipping business on Sulawesi Island. A strategically important location in the eastern part of the country, the island is in dire need of a ship repair hub.

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