German firm keen on PH defense modernization

Thyssenkrupp, a leading global industrial engineering company based in Germany, has expressed strong interest to participate in the country’s defense modernization program, particularly on military shipbuilding.

Heinrich Hiesinger, chairman of the executive board, said that being one of companies that is now focusing on defense side for military have expressed this interest to the government but said they are just on a standby for government decision.

“You know it’s your government’s choice, we as a company we have decided to focus very much on the defense side because commercial side in recent years has become so competitive that it’s primarily China and Korea,” he said.

By far, Hiesinger said, thyssenkrupp is number one globally in conventional submarines. They have expertise in frigates and submarines.

“We have very strong offering on defense side and if your government wants to grow that then definitely we are very interested to participate because partnership is even longer,” he said.

He explained that if ever they will be given the chance to participate in this project, the German firm will build it locally because it is a taxpayers’ money that government will be using and as such there should also be jobs that must be generated locally.

This means that if they receive an order for shipbuilding for defense, they will find a local shipyard for the construction of the military vessel.

He reiterated though that it is up to government to make decision because that would need a state budget.

“This is a sensitive topic. We never push because it is up for the government to make a decision. So we will just wait and if government makes a decision, we are standing aside because it belongs to sovereign decision of the state and country. If we are called, we very much respect the sovereign decision of the nation and country,” he stressed.

Hiesinger added that he is a very optimistic person and the main reason of his visit, aside from the opening of its regional hub in BGC, was to assess the state of opportunities in the country.

“The reason I did come is you know large organizations have tendency to underestimate opportunities,” he said noting that he once headed an organization here in another company and experienced how difficult to convince global CEOs of opportunities in booming markets like the Philippines.

“You cannot explain countries but need to visit countries, not just theory. To grab a bit of flavor you have to come,” he said. On this visit, he discovered that the business he saw several years ago has now turned into a big one.