Korea Shipbuilding & Marine Engineering to build manufacturing base for offshore wind power generation equipment in the Philippines

Korea Shipbuilding & Marine Engineering, a subsidiary of Korea HD Hyundai (formerly Hyundai Heavy Industries), has acquired a subsidiary in the Philippines to expand its business in the manufacture of substructures for offshore wind power generation facilities and the maintenance, repair and operation (MRO) of naval vessels.
The company has decided to lease some of the land and facilities of the container yard at Subic Bay Port. Details of the terms will be determined in the future.
The container yard, located 110 kilometers from Manila, opened in 2006.
Since its construction by Hanjin Heavy Industries (now HJ Heavy Industries) in 2000, shipbuilding had been taking place there, but operations were suspended in 2019 due to the global economic downturn in the shipbuilding industry. The current owner is a private equity firm based in the United States.
The company, which is managed by Cerberus Capital Management, is currently being used by the Philippine Navy as a base. Hyundai Heavy Industries plans to set up a military supply support center there in 2022 and take over from the Philippine Navy.
The Philippines is located in the center of the Asia-Pacific offshore wind market, which is expected to grow rapidly between 2030 and 2050, including Australia, Taiwan, and Japan.
HD Korea Shipbuilding & Marine Engineering plans to use the Subic Bay Container Yard as a manufacturing base for the substructure of offshore wind power generation facilities in close cooperation with the Philippine government.
The plan is to develop the facility into a comprehensive marine production base capable of producing vessels and hull blocks, as well as repairing ships.