- 200-hectare lease from Agila Subic secured for 10 years.
- $550 million investment planned over the next decade.
- Production target set at 10 ships per year.
South Korea’s HD Hyundai is gearing up to kick off large-scale shipbuilding operations in the Philippines after securing a 200-hectare lease from Agila Subic, a company under the Cerberus umbrella. They’re planning to start operations in January 2026, reports The Manila Times.
Lease Terms and Investment Plans
This 10-year lease will facilitate shipyard operations focused on constructing offshore wind platforms and producing vessels. As one of the biggest names in shipbuilding, Hyundai is looking to invest around $550 million over the next ten years.
Production Targets and Workforce Growth
Hyundai’s Human Resource Manager, Ralph David Magno, shared that the company aims to roll out up to 10 ships each year and create thousands of jobs in the next three to five years. They’ve already started training welders, having brought on board 3,500 workers so far. Preparations are in full swing to ensure they meet Hyundai’s production standards ahead of the 2026 launch.
Shipyard Capabilities and Processes
The Subic yard will be set up to build double-hulled product carriers ranging from 200 to 250 meters in length, with each build taking about 16 to 18 months and receiving classification from the American Bureau of Shipping. “Here, we cut and assemble small parts first, then put together big blocks — kinda like Lego.”
Employment Conditions and Comparisons to Hanjin
Cubos, a former Hanjin worker, noted: “Hyundai’s operations will be smaller than those of the now-defunct Hanjin shipyard, which at its peak employed 13,000 workers. Hyundai is aiming for about 7,000 workers when fully operational.”
He added that while salaries are slightly higher than before, inflation offsets the gains, but employee services such as ferry transport have improved.
Infrastructure and Legacy Assets
Agila Subic General Manager Mark Milan said: “We purchased them from the banks after Hanjin’s closure,” referring to the heavy infrastructure, including cranes, preserved from the Hanjin era.
Industry Context and National Goals
In 2022, the Philippines found itself in the seventh spot worldwide for shipbuilding, churning out nearly 400,000 gross tons of new vessels. This figure is significantly lower than its past capabilities and falls behind South Korea and Japan. Officials are optimistic that Hyundai’s involvement could boost the industry’s competitiveness by merging advanced foreign technology with the nation’s robust pool of skilled seafarers.
Government Support and Vision
During the partnership announcement in May 2024, President Ferdinand Marcos Jr. stated: “The next logical step for us is to ensure that the ships run by Filipinos can also be made by Filipinos.” He also said the venture would “bring maritime manufacturing back to Subic” and strengthen the nation’s ability to produce vessels for Filipino crews.
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Source: The Manila Times
