Tsuneishi Says Built 45 Ships Last Financial Year, But Ship Orders Declined

Tsuneishi Holdings Corporation is pleased to announce the FY2016 consolidated results of the TSUNEISHI Group.

Consolidated sales for TSUNEISHI HOLDINGS (32 companies including TSUNEISHI HOLDINGS) in the fiscal year ending December 2016 came to 203.8 billion yen, a year-on-year (YOY) decline of 34.5 billion yen (-14%). By segment, shipbuilding business output was nearly flat with the construction of 45 ships, but ship orders declined markedly due to the impact of last-minute orders before environmental regulations went into effect in 2015. Sales came to 154.3 billion yen, a YOY decline of 24.8 billion yen (-14%). Our shipping business, affected by the dry bulk market downturn, recorded sales of 26.9 billion yen, a YOY decline of 5.7 billion yen (-17%). However, we boosted our sales in the environment business by newly consolidating two companies and earned 11.3 billion yen, a YOY increase of 4.3 billion yen (+61%). Our energy business sales were 18 billion yen, a YOY decline of 4.2 billion yen (-18%) due to falling oil prices and a drop in sales of new/used cars. Sales of our life & resorts business were 13.1 billion yen, a YOY increase of 500 million yen (+4%). MIROKU-NO-SATO, Shimanami Village, and other facilities enjoyed record-breaking visitor numbers, whileBella Vista SPA & MARINA ONOMICHI also maintained its high occupancy rates.

Shipbuilding Business

Securing orders for various ship types by promoting a strategic product mix
Shipbuilding is the core business of the Group. In response to falling ship prices and ocean freight affected by excess shipping tonnage worldwide, we will promote a strategic product mix and build a structure to accommodate diverse needs. Besides our core bulk carrier ship model, we also construct container carriers, livestock carriers, and tugboats. This has been further augmented this fiscal year with the addition of MIHO SHIPYARD, a new group subsidiary that mainly builds fishing boats. By around 2023, we aim to lower the construction ratio of bulk carriers and shift to other ship types, such as tankers and container carriers. In 2017, we will complete capital investments at the TSUNEISHI factory (mother factory) that have been in the works since 2014, so productivity is expected to further improve.

We will also prepare for the impending labour shortage caused by a declining population and work to improve productivity while maintaining the quality that TSUNEISHI is known for. Ongoing initiatives include research of new technology, joint research with Carnegie Mellon University of leading-edge robotic technologies, etc., and active implementation of IoT with the objectives of information sharing and visualisation.

TSUNEISHI SHIPBUILDING marks its 100th anniversary in 2017. We plan to invest in the next 100 years by updating company uniforms, building new dormitories for unmarried workers, and more.

Shipping Business: Further boosting synergy of the overseas shipping, logistics, and coastal businesses for active rollout
KAMBARA KISEN’s overseas shipping business focusses on liner routes that originate in Shanghai and connect to regional ports in Japan. In addition to sustaining a coordinated business with Regional Container Lines, a major Thai shipping company, we have formed alliances with other shipping companies to provide convenient lines and services for our clients. We have also updated our fleet, selling some of the older ships and retaining newly built ships.

As a logistics company, KAMBARA LOGISTICS had been preparing up to and through 2016 for approval and certification as an AEO customs broker and AEO warehouse operator under the AEO (Authorized Economic Operator) programme. Both were granted on 17th January 2017 by the Director-General of Kobe Customs. As an AEO customs broker, we can develop our logistics business more actively.

KAMBARA TUG AND MARINE SERVICES, which operates coastal shipping, launched the tugboat UTSUMI at TSUNEISHI HEAVY INDUSTRIES (CEBU), Inc. (THI) in the Philippines in 2016, bringing tugboat ownership to eight vessels. In addition to tugboats for large ships, we are also planning operations for transporting floating structures and offering harbour transportation.
Source: Tsuneishi Group