HD KSOE to lease Subic shipyard in Philippines

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HD KSOE to lease Subic shipyard in Philippines

Published: 15 May. 2024, 16:18 Updated: 15 May. 2024, 19:17

President of the Republic of the Philippines Ferdinand Marcos Jr., center, attended the event held by HD KSOE with CEO Kim Sung-joon, left, and Alexander Benard, senior managing director of Cerberus. [HD KOREA SHIPBUILDING & OFFSHORE ENGINEERING]

HD Korea Shipbuilding & Offshore Engineering (HD KSOE) will lease a portion of the Subic yard in the Philippines, along with its facilities, to propel business in the production of offshore wind turbine substructures and provide ship repair services.

The company aims to develop the area into a maritime complex capable of manufacturing the substructures as well as ship blocks while also providing maintenance, repair and overhaul services through close cooperation with the Philippine government.

The Korean company announced its future operational plans for the site with U.S. private equity group Cerberus Capital Management, the current owner of the Subic yard, at an event held by HD KSOE on Tuesday. President of the Republic of the Philippines Ferdinand Marcos Jr., attended the event with Kim Sung-joon, HD's CEO, and Alexander Benard, senior managing director of Cerberus.

Subic shipyard is located in Subic Bay in the Philippines and 110 kilometers (68 miles) northwest of the capital Manila. The yard was constructed by then-Hanjin Heavy Industries back in 2006 for the purpose of shipbuilding, but operations were suspended in 2019 due to a deteriorating global shipbuilding business. HJ Shipbuilding & Construction is now Hanjin Heavy Industries.

The shipyard is being utilized as a naval base by the Philippine Navy. HD Heavy Industries has performed ship repairs and maintenance at the Subic yard since 2022.

"We will make the utmost effort to ensure the early operation and stabilization of the Subic yard by using our experiences and know-how about global operations,” said Kim.

BY CHOI HAE-JIN [choi.haejin@joongang.co.kr]