South Korean conglomerate HD Hyundai plans to begin shipbuilding operations in the Philippines early in 2026. The development follows the signing of a 10-year lease agreement between HD Hyundai Heavy Industries and private equity firm Cerberus Capital Management through local subsidiary Agila Subic. The lease covers 200 hectares of land within the former US Navy base in Subic Bay, about 100 kilometers north of Manila.
HD Hyundai will invest approximately USD 550 million over the next decade to operate the facility, which is expected to reach a maximum annual production capacity of 10 vessels. The facility will initially focus on constructing product tankers up to 250 meters in length, with each ship scheduled to take 16 to 18 months to complete.
The Agila Subic site was previously occupied by Hanjin Heavy Industries and Construction Philippines (HHIC-Phil). Cerberus acquired the property in April 2022, three years after HHIC-Phil declared bankruptcy with debts totaling around USD 412 million. Before its bankruptcy, HHIC-Phil built very large crude carriers and other commercial ships for international clients.
HD Hyundai’s planned operations in Subic Bay mark a significant step in revitalizing the country’s shipbuilding industry and leveraging existing industrial infrastructure. Officials expect the project to create jobs and stimulate economic activity in the region while positioning the Philippines as a competitive location for commercial ship production in Southeast Asia.
(Source: Baird Maritime)
