HD Hyundai launches shipbuilding operations in Philippines with steel-cutting ceremony
South Korea's HD Hyundai, through its newly established HD Hyundai Heavy Industries Philippines business unit, has cut the first steel to be used in the construction of a new 115,000DWT chemical tanker.
The steel-cutting ceremony was held at HD Hyundai's recently acquired shipyard at the former US Navy Base in Subic in the Philippines' Zambales province on Tuesday, September 2.
The ceremony also marks the official start of HD Hyundai's shipbuilding activities in the Philippines. Among the guests were Philippine President Ferdinand Marcos Jr, US Ambassador to the Philippines MaryKay Carlson, and South Korean Ambassador to the Philippines Lee Sang-hwa.
HD Hyundai and private equity company Cerberus Capital Management had earlier entered into an agreement for the lease of the Cerberus-owned Agila Subic Shipyard in Subic. HD Hyundai will invest the equivalent of US$550 million over the next 10 years in the operation of the facility, which is expected to have a maximum annual production capacity of 10 vessels.
The HD Hyundai facility will initially focus on the construction of product tankers measuring up to 250 metres long. The construction time for each ship is scheduled to be between 16 and 18 months.
The Agila Subic facility sits on the site once occupied by Hanjin Heavy Industries and Construction Philippines (HHIC-Phil). Cerberus acquired the Agila Subic site in April 2022, three years after HHIC-Phil filed for bankruptcy after having incurred debts equivalent to US$412 million.
Prior to declaring bankruptcy, HHIC-Phil had engaged in the construction of very large crude carriers and other commercial ships for overseas customers.
