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LATEST NEWS & ARCHIVE

NEWS 191 : NEW YEAR'S GREETINGS 2015

Katsuhiko Ochi, Kyokuyo Shipyard

Dear customers and friends, I would like to wish all the best for you on this first day of 2015!

When Shinzo Abe came back to the prime minister's post in winter 2012, he introduced a set of policies to overcome deflation. The policies, a.k.a. Abenomics, were successful in correcting the record-breaking 'hyper' yen appreciation : the currency slid nearly 35% since then to about 120 per dollar. The drop in the yen, together with oil price fall by 40%, helped push Japanese export industries, like automobiles, working machines, in 2014.

The Japanese shipbuilders with the traditional "domestic production-export” business model are no exception. Increased dollar-based competitiveness thanks to the yen depreciation helped them to build up order backlog for about 3 years with numerous new orders for various types of ship added during 2013-2014.


Gas Carrier ECO CHIOS

Talking about Kyokuyo, the company could deliver all the contracted vessels smoothly and timely in 2014, too. It also received several new orders - for newly designed vessels from international customers and for fuel-saving eco-ships from domestic owners - which will keep us busy until the middle of 2017. For repairing business, the annual turnover 2014 exceeds that of the previous year. I, on behalf of the company, would like to express my sincere appreciation to our customers and stakeholders for their continuous support and patronage to Kyokuyo Shipyard Corporation.


Container Carrier HEUNG-A YOUNG

Although Japanese shipbuilders have tail wind as far as the recent trend continues in the currency market, we must be prepared for any big changes that may occur around us triggered by fluctuations in raw material prices, shipping market, or exchange rates.

In 2015, Kyokuyo Shipyard Corporation will implement the following strategies.

Firstly, we will brush up the production side of the company to further reduce the costs. Under the leadership of the general manager of the production division, extensive improvements will be undertaken from hull construction, painting to outfitting : replacement of older equipments and layout change in pre-fabrication shop ; optimization of worker assignment ; and more precise control over the quantity of subcontracted hull blocks, to detail some. Achieving the best quality without breaking the budget is a very difficult challenge. We will try our best to update our factory to optimize its efficiency without losing its compactness by logically and forecastingly controlling the flow of goods and personnel.

Container Carrier NAGARA
Container Carrier NAGARA

2014 Wedding Cake of the Year
(for
Teruki Tanaka & his wife)

Secondly, the further enhancement of our design capabilities. The company is currently addressing the urgent task of complying with the new SOLAS regulations to limit noise levels onboard, adopted in July 2014. While they require very complex design preparations of the builders for smaller ships like Kyokuyo, the company will find the best solutions utilizing its strong design capabilities and in cooperation with suppliers.

The construction of a series of coastal vessels with our award-winning Semi-Spherically-Shaped-Bow (patent granted in japan, China, Korea, U.S. and Europe) will be started this year. Regardless of the oil price fall, eco-friendliness is more than just a trend. Kyokuyo will propose the advanced 'eco-ships' that can not be built anywhere else, by making its fuel-saving and dual-fuel technologies even better and applying them to a wider range of product lines.

Finally, this year too, the company maintains and strengthens the strategy of focusing on "technically challenging and high-value added custom-made vessels" "in small numbers" "for world-wide customers" - in other words, "projects that will not attract other shipyards". Exerting our flexibility in designing and English communication skills, we will try to find and take up good projects for us, no matter how big is the market behind them.

I firmly believe that having superiority to the competitors on above 3 points is the necessary conditions for Kyokuyo to strongly survive ever-changing business situations.


Our Newest Colleagues

70 years have passed since the company started its operation as a fishing boat repairer. Many young people joined us recently to dynamically alter the age profile of its workforce. I want Kyokuyo Shipyard Corporation to be always a busy and lively place to work. I want all its staffs and subcontractors to share a sense of unity as a team. The company may be a small for a shipbuilder, but who says good things come in big packages?

To end, let me reiterate our resolution of new year : "each of us is committed to do his/her best, in a honest way, with the pride of a ship manufacturer, keeping safety-first in mind, for the sake of himself/herself, company, local community, and our valuable customers and other people involved who have given us opportunities to build our ships."
Your continued patronage shall be highly appreciated !

Katsuhiko Ochi
President
Kyokuyo Shipyard Corporation
[2015/01/01]

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