HD Hyundai to Revive Philippine Shipyard

Reports have confirmed that HD Hyundai is engaged in efforts to resume shipbuilding at the former Hanjin shipyard in the Philippines, as the shipbuilding giant looks to expand its low-cost operations and increase capacity to realise new market opportunities. 

Journalists from The Manila Times were invited to tour the yard at Subic Bay and were briefed on HD Hyundai’s efforts to restart shipbuilding there. 

It is believed that HD Hyundai intends to build 10 ships a year at the shipyard, focusing predominantly on product carriers measuring 656 to 820 feet (200 to 250 metres) in length. Each ship will be built over a period of 16 to 18 months.

It has been suggested that the yard will also be used to construct offshore structures, e.g. for the wind energy sector. 

According to The Manila Times, recruitment and training has already begun, with approximately 3,500 workers hired - rising to 7,000 once the yard is fully operational. 

Previously, the yard had been operated by Hanjin, employing over 13,000 workers at its peak. Unfortunately, Hanjin was hit hard by the downturn in shipbuilding, resulting in mass layoffs and the company’s eventual bankruptcy in 2019. 

Reports suggest that HD Hyundai has taken the yard on a 10-year lease, encompassing some 200 hectares of space. Included in the lease are some of the equipment - including cranes - from the former shipyard. HD Hyundai is also anticipated to invest some $550 million in the site over the coming decade.

The Philippines is not the only location in which HD Hyundai is exploring shipbuilding operations. It has recently been reported that HD Hyundai has been considering entering the bidding for a new shipyard in Morocco - giving the company its first location close to the European market. HD Hyundai has also recently signed an agreement in the United States to support the country’s domestic shipbuilding ambitions. 

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