Industry players foresee sustained demand for tiles

Sun.Star Cebu <> Thursday, July 9, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

RESPONDING to customers’ clamor for housing solutions, Cebu Oversea Hardware Co. Inc. inked a pact with Malaysia-based tile manufacturing company White Horse Malaysia last week to distribute the latter’s products in the Philippines.

“The demand for tiles in the local market will always be there because houses are being built. It is just a matter of buying the cheapest, the mid-range or the expensive one. The purpose of distributing White Horse is to offer the public European quality products at affordable prices,” said Michael Co, chief executive officer of Cebu Home and Builders Centre.

Cebu Oversea Hardware owns and operates Cebu Home and Builders Centre, a one-stop shop of building materials. It also owns and manages other furnishing and finishing stores, including Expo Tile and Bath and Home Improvement Center, Living ‘n Style, The Home Depot, and Better Living Tile and Bath Center.

Cebu Oversea Hardware will be the sole Philippine distributor of White Horse Malaysia tiles.

Cebu Home and Builders Centre general manager James Co added that the company is also trying to create a demand for White Horse tiles among home builders and
home- owners by providing virtual solutions.

Virtual showroom

In collaboration with Cebu Oversea Hardware, White Horse is setting up a “virtual showroom” showcasing panels of tile samples and the “Just Click” computer software that will allow customers to see different design concepts of tile samples.

The virtual showroom, equipped with a design program called “I-Designer,” will also enable customers to design their rooms on the computer and have them printed out on the spot.

Lawrence Lim, White Horse Malaysia regional manager for overseas branches, said the exclusive value-added service is available at no extra cost to the customer.

This virtual showroom will be set up at The Home Depot outlets in Metro Manila and at the Expo Tile and Bath and Home Improvement Center in Parkmall, Mandaue City.

White Horse products will also be available in these stores and other stores under Cebu Oversea Hardware. They will be distributed to key cities in the Visayas and Mindanao.

White Horse plants in Taiwan, Malaysia, and Vietnam produce a combined 60 million square meters of tiles per annum.

It plans to put up a new manufacturing plant in the Asia-Pacific to meet the growing demand for tiles. The Philippines, with its growing population and high preference for quality products, is being considered as a potential site for White Horse’s manufacturing operations.

Filed under: Business, Construction/Building, Export Sector, Real Estate, Retail

CCCI awardees stress importance of hard work in success of business

Sun.Star Cebu <> Thursday, July 2, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

BEING inspired and being able to inspire were among the traits shared by the six local entrepreneurs who were honored during the 14th Annual Grand Chamber Awards Tuesday night.

The top award—Entrepreneur of the Year—was handed to Profood International Corp. president Justin Uy who was described during the awards night as a “self-made business icon.”

When he was 12, Uy started selling cigarettes to vendors on consignment. Shortly after, he he ventured into shell craft and later opened an egg and poultry business.

He enabled Profoods to achieve further growth amid economic and financial difficulties, and positioned the company as leading producer and exporter of processed fruit products.

“I am here partly because of my brother and sisters. I think my greatest success is to get 11 of us to work together. That is something I am very proud of,” said Uy who received the award from Gov. Gwendolyn Garcia, Rep. Raul del Mar (Cebu City south) and Cebu Chamber of Commerce and Industry (CCCI) president Samuel Chioson.

In a separate video message, Uy said the secret of being a successful entrepreneur is hard work. “There is no replacement for it,” he added.

The other awardees—Hyundai Cebu president Edward Onglatco as the Young Entrepreneur of the Year; San Remigio Beach Club president Antonio Ynoc as the Countryside Entrepreneur of the Year; CNT Lechon proprietors Norman and Catherine Quijada as Small Business Entrepreneurs of the Year; 33 point 3 Exports Inc. president Jenifer Cruz as the Socially Responsible Entrepreneur of the Year; and Royal Oaks International School president as the Emerging Entrepreneur of the Year—shared his views about the importance of hard work and perseverance.

The CCCI picked its awardees based on social responsibility, personal integrity, their businesses’ strategic direction, entrepreneurial spirit and the financial performance of their companies.

The Grand Chamber Awards, which was culmination of the Cebu Business Month 2009 of the CCCI, also included four special citations.

The Cebu Investment Promotions Center (CIPC) received a special citation for promoting Cebu to foreign direct investors.

According CCCI, CIPC is the “driver of investment opportunities in Cebu, the provider of business research and data…(and) the developer and trendsetter of economic thrust and direction.”

Cebu Mitsumi, Inc. got a special citation for employment generation and for being the top employer in Cebu. The electronic parts manufacturer had 8,393 workers as of March and contributes at least P40 million a month to the local economy.

A special citation for exemplary commitment to Cebu was given to Lexmark Research and Development Corp. for bringing its research and development operations to Cebu.

The company was also lauded for having “greatly contributed (and for being a) catalyst (in propelling) Cebu’s information and technology toward global competitiveness.”

British Armour Manufacturing International Inc. also received a special citation for exemplary contribution to innovation and technology. The company has more than 30 years of expertise in armoring and providing protection to guarantee ballistic safety with high quality design.

Grand Chamber Awards 2009 chair Alice Woolbright Fernandez said in a statement that the award’s goal was to provide “more than our usual dose of inspiration in today’s crucial and fragile economy.”

Filed under: Business, Employment, Export Sector, Retail, Small and Medium Enterprises

Liberal trade, WTO bring opportunities to Cebu firm

Sun.Star Cebu <> Thursday, July 2, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

AN international freight forwarding company maintains a positive outlook amid the global economic crunch that is affecting the country’s export industry.

Global Carrier Philippines Inc. managing director Camel de Pio-Salvador said there is a “big future” in the forwarding industry with the liberalization of trade among countries under the World Trade Organization.

She cited the lowering of trade barriers and the establishment of free trade agreements that prompt countries to remove tariffs on imports.

But she admitted that Global Carrier has experienced a “slight decline” in terms of volume of shipment. “We never experienced zero” even as the country begins to feel the effects of the global financial crisis, she said.

“The (forwarding) industry is relatively okay. It’s a continuing business,” she said.

She expressed hope that there will be more investors in the import and export industry.

De Pio-Salvador raised the need for establishing linkages with industry stakeholders in other parts of the world.

Last June 11 to 14, de Pio-Salvador attended the 6th Annual Sino-International Freight Forwarders Conference at Asia World Expo in Hong Kong. The event, organized jointly by the China International Freight Forwarders Association and World Cargo Alliance, provided a venue for top independent international logistics companies to network and explore opportunities for business growth.

It was attended by 1,500 delegates from 140 countries and regions. Global Carrier Philippines Inc. was the only Cebu-based company present.

“Through the conference, we were matched with other forwarders (with whom we) created contacts. At the same time, we were able to check the top (export and import) products in their locations,” de Pio-Salvador said.

Incorporated in 1994, Global Carrier Philippines Inc. offers comprehensive cargo services. It also caters to expatriates and consultants in the mining, cement manufacturing and energy generation sectors.

Filed under: Business, Export Sector, Small and Medium Enterprises

Flour millers lament low demand, entry of smuggled variety in RP

Sun.Star Cebu <> Wednesday, July 1, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

ALTHOUGH food is a necessity, consumption of baked products has been dampened by the global economic slowdown.

Philippine Foremost Milling Corp., the country’s second largest flour miller, reported that its sales have declined as Filipino consumers start experiencing the effect of the global financial crisis.

Dr. Alfonso Uy, president of Philippine Foremost Milling Corp., lamented that the effect of the crisis has been aggravated by the entry of smuggled flour into the country.

Uy blamed the declining demand for flour on high prices. He said wheat from the United States has caused the price of flour to go up. Wheat is the main ingredient of
flour.

Last year, demand for flour fell around 20 percent industry-wide. Another five-percent drop is expected this year, Uy said.

He said production of the flour milling industry is contracting. Flour millers in the country used two million tons of wheat three years ago but processed only 1.8 tons in 2007 and 1.5 tons last year.

Weak demand has caused prices of flour to drop since third quarter last year.

“(But) the commodity market is picking up again. (So) there is no chance for flour prices to go down some more,” Uy said.

While the market is yet to fully recover, Philippine Foremost Milling Corp. is maintaining a baking school and “going out of its way” to encourage the public to use more flour products.

Uy was in Cebu last June 18 as one of the featured entrepreneurs in the Meet the Business Icons, one of the highlights of the Cebu Chamber of Commerce and Industry-Cebu Business Month 2009.

Filed under: Business, Employment, Entrepreneurship, Export Sector

25-member CCCI trade mission leaves for Macau amid flu scare

Sun.Star Cebu <> Thursday, June 25, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

DESPITE reported cases of influenza A(H1N1) virus in some parts of Asia, 25 local businessmen left Cebu yesterday for a trade mission to Macau, a Chinese territory on the southeast coast of China.

“We do not want to (miss) this opportunity,” said Carmel de Pio-Salvador, head of the Cebu Chamber of Commerce and Industry (CCCI)-South Africa Business Council.

The 25-member delegation was part of a trade mission to South Africa in September last year.

Geronimo Sta. Ana, Board of Investments governor, will present to the business community in Macau today different investment opportunities in the country.

Sta. Ana said in an interview last Monday that the government’s stimulus plan requires companies to provide more incentives to investors. During the same presentation, he will also update potential investors in Macau about the advantages of investing in Cebu.

The business seminar will be followed with business matching and networking sessions.

In his presentation for the Macau business community, Sta. Ana pointed out that the Philippines exported more than $8.1 million worth of products to Macau and imported more than $8.7 million worth of products from Macau.

Export products include petroleum products, wood furniture, paper and other paper products, sporting goods, processed foods, live fish, textile yarn, electronics and copper while import products include semiconductors, electronics data processing, copper manufactures, pharmaceutical products, sporting goods and paper products, among others.

In a separate interview before their departure for Macau, de Pio-Salvador said the delegation will bring along One Town, One Product (Otop) products prepared by the Department of Trade and Industry. These Otop products include sinamay, dried mangoes and other food delicacies.

“We hope to promote our products and services, as well as gain orders,” she said, adding that they will be attending the trade mission under CCCI’s banner.

Part of the trade mission is participation in the product catalog show organized by the Trade and Investment Promotion Institute of Macau, in partnership with the Philippine Consulate General and the Department of Trade and Industry.

The focus of the product catalog show is the Philippine food and agricultural products and services.

Filed under: Business, Export Sector, Tourism

MEZ locator to stop operations

Sun.Star Cebu <> Tuesday, June 23, 2009

BY DEBRA ESTERO & NANCY R. CUDIS, Sun.Star Staff Reporters

AN ELECTRONICS manufacturing firm at the Mactan Economic Zone (MEZ) 1 is scheduled to close by the end of August, displacing at least 800 regular workers.

Canadian electronics manufacturing firm Celestica Inc., which has been a locator at MEZ for 19 years, announced its closure about three weeks ago, said MEZ administrator Sansaluna Pinagayao.

The decision, said Celestica senior manager Jeoffrey Escala, came from the firm’s corporate headquarters in Canada and was announced to its Cebu-based employees last May 28.

“The decision made was in response to market demands,” Escala told Sun Star Cebu in a phone interview yesterday.

He added that as an effect of the global financial crisis, the management of Celestica decided to close its facility located at the MEZ to “allow the company to optimize its operating network.”

“It was a high-level (management) decision,” he said.

Pinagayao said Celestica Inc. has tried to avoid the closure through various cost-cutting measures, like reducing workdays, but these efforts were not enough to cope with the “steep” market demand in the electronics industry in the face of the global financial crisis.

But Escala said that the management will give the affected workers severance packages that are above the minimum requirement mandated under the country’s labor code.

Superior

Pinayagao confirmed this, saying the severance package is “superior than what is applicable.”

He added that Celestica Inc., as part of upholding the rights of Filipino workers, should complete the clearances of its employees before the closure will take effect.

The company has already coordinated with several agencies to implement training programs and counseling services for its affected employees.

These include training programs from the Department of Labor and Employment, the Lapu-lapu City Government, the Department of Social Welfare and Development and the Department of Agriculture.

For its employees who want to learn new skills, Celestica also coordinated with the Technical Education and Skills Development Authority.

Terminated

Although Celestica’s operation is scheduled to stop by Aug. 31 yet, Escala said there are employees whose services will be terminated as early as July 31, depending on an employees’ workstation.

Escala said management has not yet divulged plans of the company when it comes to its physical assets.

“I also can’t speculate as to how many employees will remain with the company after Aug. 31,” he said.

MEZ plans to reserve the plant for Celestica Inc. for a month or two after its closure should the company be able to spot growth signals in the electronics industry and decide to resume operations in Cebu.

Earlier, another Celestica plant in Laguna was also closed in December of 2007, displacing 500 employees, Escala said.

Escala also did not say if there is a possibility for the company to resume its operations in Cebu but he said that based on a “corporate viewpoint,” the Philippines has still remained to be an attractive destination for international investments.

Pinagayao said they have not received any other closure announcements from other locators engaged in electronics.

In 2004, Celestica Inc. took over NEC Technologies Philippines that was established in 1989 at MEZ.

Filed under: Business, Export Sector

Filipino-owned export firm stays on course amid crisis

Sun.Star Cebu <> Friday, June 5, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

AFTER experiencing internal problems involving management and logistics, a homegrown export company that manufactures marine furniture is now enjoying a growing number of orders from shipbuilders.

Cebu Marine Furnishing Industries Inc. (CMFII) continues to tap the domestic market and is starting to expand its client base to shipbuilders in the United States.

CMFII general manager and factory operation head Gil S. Hilayo Jr. attributed the company’s growth to aggressive marketing and its efforts to streamline production processes.

“We don’t want to lose our market because of lack of efficient client-management system in the past. Being a Filipino company producing furniture for big shipbuilding companies across the world, we have to do more, especially in terms of quality, to get the attention of more potential international clients,” he told Sun.Star Cebu.

CMFII started as a backyard furniture business of the Hilayos before a Japanese shipbuilding company—Tsuneishi Forestry Construction Co. Ltd.—proposed a joint venture. Under the joint venture, T & H Furnishing Industries Inc. started operations in November 1995.

But conflict arose between the Hilayos and the Japanese management team hired by Tsuneishi, which led to end of the joint venture last April.

Hilayo said that his family saw the potential of exporting marine furniture and decided to continue the business, which employs around 150 workers.

Last May, the company—now known as CMFII—was registered with the Securities and Exchange Commission and with the Philippine Economic Zone Authority as an economic zone export enterprise. Its 2,000-square-meter plant is located at the Mactan Economic Zone 2.

CMFII makes custom-built furniture—tables, chairs, sofas, beds, navigation desks, wardrobe and medicine boxes—for ships. Its clients include Tsuneishi Shipbuilding Co. Ltd. (Japan), Tsuneishi Heavy Industries (Cebu) Inc., Samsung Heavy Industries Co. Ltd. in Korea and FBMA Marine Inc., which manufactures fastcraft vessels in Balamban, Cebu.

Using imported raw materials from Europe, it also manufactures steel furniture, as well as curtains and upholstery. It also
undertakes the outfitting works of ships that will be built by Sub-See Philippines Inc. at the Cebu Yacht Club.

This year, it will be working on more than 30 orders from US, Europe and other parts of Asia.

The company’s former investor is now its distributor in Asia while Norac Marine Furniture A/S is its distributor in Europe.

“We will also be tapping the local market, including inter-island shipping companies,” Hilayo said.

Since shipbuilders have reported declining orders, CMFII—whose closest competitors are based in China—is eyeing companies that are engaged in maintaining and refurnishing existing ships.

Filed under: Business, Employment, Entrepreneurship, Export Sector, Tourism