Tomen Wins Order for Disaster Prevention Ships from Government of Indonesia
2003-11-20
Tomen Corporation with Mitsui Engineering & Shipbuilding Co., Ltd. (MES) received an order from the Directorate General of Sea Communications (DGSC), part of the Ministry of Communications of the Republic of Indonesia, to supply two Disaster Prevention Ships to prevent marine disasters including oil-tanker accidents. Tomen and DGSC signed the contract, valued at approximately 3.0 billion yen, on November 20, 2003 in Jakarta. Japan Bank for International Cooperation (JBIC) will provide a Yen Credit loan for the project.
DGSC, the marine transportation sector of the government of Indonesia, planned this project to prevent marine accidents in their area including the Straight of Malacca, an important marine route connecting the Indian Ocean and the South China Sea. Following the serious oil-tanker fire accident in 1992 in the Straight of Malacca, JBIC provided the yen credit loan for this project. The area is also a major marine route for Japan to import crude oil from the Middle East.
Delivery of two Disaster Prevention Ships is scheduled 24 months from the effectuation of this contract. One unit will be built in Japan and another will be built in Indonesia by a local shipyard supervised by MES. The capability of the ships includes collecting oil to prevent its spreading on the ocean surface in the event of an oil slick and extinguishing fires in the involved in oil-tanker accidents.
This international tender was done in November 2002. Tomen was awarded the tender, beating a European ship builder, because of Tomen's long business history with the Ministry of Communications and the high quality and reliability of MES's technology. MES's transfer of high quality skills and technology to industry in Indonesia will add extended value to the project when completed.
About Tomen Corporation
Tomen is an international company with 80 offices worldwide and is headquartered in Japan. It is listed on the Tokyo, Osaka and Nagoya stock exchanges. It maintains a leadership position in chemicals and plastics, foodstuffs, textiles, electronics and plant projects business fields, where it seeks to provide innovative services to its customers and business partners. In March 2003, Tomen started the "Tomen Group Medium-term Management Plan" to strengthen its business structure and cost competitiveness and to prepare for its integration with Toyota Tsusho in coming years. As of September 2003, the Toyota Group became Tomen's largest shareholder, with about 35% equity in the company. The alliance includes business expansion by combining Tomen's marketing strength and Toyota Tsusho's operational strengths as well as the consolidation of some offices overseas.
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