South Korea’s Hyundai Heavy Industries to invest in the Philippines Subic Shipyard

Private equity company Cerberus Capital Management and South Korea’s HD Hyundai Heavy Industries have entered into an agreement on the lease of the Cerberus-owned Agila Subic Shipyard at the US Naval Base in the Philippines. Hyundai Heavy Industries, acting on behalf of parent company HD Korea Shipbuilding and Offshore Engineering, will use the facility for the manufacture of offshore wind power substructures and the expansion of its maintenance, repair and overhaul (MRO) business.

Located 40km north of the capital Manila, the Agila Subic Shipyard also sits on the site once occupied by the Hanjin Heavy Industries & Construction Philippines.

Hyundai Heavy Industries established a logistics support centre at Subic in 2022 for MRO support to the Philippines Navy. Cerberus acquired the Agila Subic site in April 2022, three years after Hanjin filed for bankruptcy, with debts of USD 412 million. Hyundai Heavy Industries is expecting to invest USD 550 million in the Subic shipyard over the next ten years.