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President Ferdinand Marcos, Jr. led the inauguration of HD Korea Shipbuilding and Offshore Engineering Industries and HD Hyundai Heavy Industries Philippines’ shipyard in Subic, Zambales on September 2
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A symbolic steel cutting ceremony was held, marking the start of production for the South Korean shipbuilder’s expansion in the Philippines
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The renewed facility will significantly increase the country’s shipbuilding capacity from 1.3 million to 2.5 million deadweight tons
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HD KSOE chief executive officer Kim Sung-joon said the Subic shipyard “will lay the foundation to position your country as an emerging power in the global shipbuilding market”
President Ferdinand Marcos, Jr. led the inauguration of HD Korea Shipbuilding and Offshore Engineering Industries (HD KSOE) and HD Hyundai Heavy Industries Philippines, Inc.’s (HHIP) shipyard in Subic, Zambales on September 2.
A symbolic steel-cutting ceremony was held, marking the start of a 115,000-ton petrochemical carrier project. The vessel is the first of a four-vessel order placed by an Asia-based shipping company in December.
The renewed shipyard in Subic, which used to be the Hanjin shipyard, will significantly increase the country’s shipbuilding capacity from 1.3 million to 2.5 million deadweight tons, from handling four to five massive oil tankers to about eight, Marcos said in a speech during the launch.
“But more than size, now the ships that we built – this means that we can accommodate vessels with higher volumes, boost our export potential, and create more jobs for our Filipino workers,” he added.
“By 2030, we look forward to this yard employing 4,300 Filipinos. That equates to thousands of families with food on the table, thousands of workers with dignity in their craft, thousands of Filipinos who see shipbuilding as a source of livelihood,” Marcos said.
For his part, HD KSOE chief executive officer Kim Sung-joon said the Subic shipyard “will lay the foundation to position your country as an emerging power in the global shipbuilding market while also providing the momentum to expedite your smoother and swifter ascent into the ranks of the world leading economies.”
Kim noted that the Philippines “possesses all the ideal conditions to become a major player in the shipbuilding industry” with its maritime environment, young highly-skilled workforce, and the commitment of support by the government.
He added that shipbuilding is a comprehensive manufacturing sector that incorporates diverse technologies such as steel, machinery, electric, and welding, which he noted “are foundations for national development.”
“In this sense, fostering the shipbuilding industry can be a decisive force in driving national economic transformation,” he added.
For HD KSOE, on the other hand, Kim said the Subic shipyard will serve as “a cornerstone to further solidify its position as the world’s number 1 shipbuilder.”
Based on the United Nations Conference on Trade and Development Review of Maritime Transport Report 2024, the Philippines is named as one of the top five shipbuilding nations globally in 2023 after China, Korea, and Japan.
HHIP’s restart of large-scale shipbuilding in the Philippines leases 200 hectares from Agila Subic for operations beginning January 2026.
HD KSOE and US-based private equity firm Cerberus Global Investment LLC last year formalized their lease agreement on a portion of the former Hanjin shipbuilding facility in Subic, Zambales.
Cerberus and Agila NY Naval Inc./Agila South Inc. in 2022 acquired the 300-heactare area that was once occupied by South Korean shipbuilder Hanjin Heavy Industries and Construction-Philippines, Inc., which had been Subic’s biggest locator before it went bankrupt in 2019.
READ: Cerberus, Hyundai formalize lease on Subic shipbuilding facility
The 10-year lease covers shipyard operations designed to support both offshore wind platform construction and vessel production.
The company plans to invest about $550 million over 10 years. – Roumina Pablo
