Hanjin Heavy’s Subic shipyard files for rehabilitation

Hanjin Heavy Industries & Construction, a local midsized shipyard, said Tuesday that its affiliate in the company’s Philippine shipyard has filed for rehabilitation.

In a regulatory filing, the shipbuilder said HHIC-Phil, which operates the Subic yard, has filed for insolvency.

Hanjin Heavy and its affiliate have been suffering from a drop in new orders amid a protracted slump in the global shipbuilding sector.

In 2004, Hanjin Heavy built the shipyard in the Philippines to boost its overall competitiveness.

The Subic shipyard’s assets have been valued at 1.84 trillion won ($1.64 billion), with the number of employees standing at some 4,000.Hanjin Heavy has been restructuring since 2016 by selling non-core assets. So far, the shipyard has met some 65 percent of the 2.1 trillion-won restructuring proposed by its creditors.

Its other shipyard in the Philippines has secured 1.2 trillion won worth of orders to keep it busy for three years. In 2017, Hanjin Heavy posted an operating income of 86.7 billion won following operating income of 150 billion won in 2015 and 49.3 billion won in 2016.

Yonhap