HD Hyundai Philippines Cuts Steel on First Vessel
HD Korea Shipbuilding & Offshore Engineering (HD KSOE) has conducted a steel cutting ceremony for a 115,000-ton product tanker at the HD Hyundai Philippines Shipyard in Subic Bay, Philippines.
The vessel is the first ship built by HD Hyundai Philippines and is the first in a series of four vessels ordered from an Asian shipping company in December last year.
Last May, HD KSOE signed a lease agreement with Cerberus Capital for a portion of the Philippine shipyard site, marking the launch of this second HD KSOE overseas shipyard.
HD KSOE established HD Hyundai Vietnam Shipbuilding in Khanh Hoa Province, Vietnam, in 1996 and has grown it into the largest shipyard in Southeast Asia, building approximately 10 ships annually.
HD KSOE anticipates that HD Hyundai Philippines will play a key role in restoring its competitiveness and reclaiming the market for general commercial vessels, such as bulk carriers and tankers, at a time when domestic shipyards are struggling due to competition from China.
The company also seeks to leverage HD Hyundai Philippines to strengthen economic and security cooperation among Korea, the US, and the Philippines.
HD Hyundai Heavy Industries, a subsidiary of HD KSOE, established a logistics support center in the Philippines in 2022 which has been providing maintenance, repair, and overhaul services for vessels such as frigates and patrol ships built and delivered in the Philippines.
Leveraging this experience, HD-KSOE plans to establish a cooperative system with the Philippine government and utilize HD Hyundai Philippines as another strategic hub.
It anticipates maximizing efficiency through collaboration amongst its overseas bases. HD Hyundai Philippines is geographically close to HD Hyundai Vietnam Shipbuilding, HD Hyundai Vina (tentative name for another yard in Vietnam), and the Singapore investment corporation (planned), enabling mutual access to supply chains for equipment such as blocks and ship tanks, as well as human resources management.
HD Hyundai announced plans to establish an investment corporation in Singapore in April. It will oversee overseas operations and manage overseas production bases for HD Hyundai Vietnam Shipbuilding, HD Hyundai Philippines, and HD Hyundai Vina.
Kim Sung-joon, CEO of HD Korea Shipbuilding & Offshore Engineering, stated, "The Philippines is emerging as a shipbuilding powerhouse, boasting a blessed natural environment and excellent human resources, supported by the government. We will leverage HD Hyundai Philippines to further strengthen our global competitiveness in order acquisition."
