Philippines Welcomes New Shipbuilding Giant
On September 2, 2025, President Ferdinand Marcos Jr. inaugurated the HD Hyundai Heavy Industries facility in Subic, Zambales, marking a significant milestone for the Philippines’ shipbuilding sector. This new global manufacturing complex, developed in partnership with the South Korean government, promises to create thousands of jobs amid ongoing concerns about corruption in infrastructure projects. With the facility set to become fully operational by January 2026, it aims to enhance the country’s position in the global shipbuilding industry.
HD Hyundai’s Commitment to Philippine Shipbuilding
During the inauguration, Mr. Kim Sung Joon, CEO of HD Korea Shipbuilding and Offshore Engineering, highlighted the Philippines’ potential as a major player in the global shipbuilding arena. He emphasized three key factors: the country’s favorable maritime environment, a young and skilled workforce, and a strong commitment to development. President Marcos expressed gratitude to the South Korean government and HD Hyundai for their investment, underscoring the importance of the maritime heritage and workforce in the Philippines.
The establishment of HD Hyundai Philippines at the Agila Subic Compass facility, previously owned by Hanjin Heavy Industries, represents a significant investment in the region. The facility spans 310 hectares and is expected to produce ships ranging from 100 to 250 meters in length. This development is anticipated to boost the Philippines’ tonnage share in the global shipbuilding rankings, providing a much-needed economic boost in a time of widespread discontent over corruption in public projects.
The Philippines has a rich history in shipbuilding, dating back to the post-World War II era when the government recognized the need for a robust maritime transport system. From the 1950s to the 1990s, the shipbuilding and repair industry received substantial government support, which helped lay the groundwork for the current industry. However, over the years, support has waned, and many incentives have been withdrawn, hindering the sector’s growth.
Challenges and Opportunities Ahead
Despite the challenges faced by the shipbuilding industry, including the withdrawal of government support and the need for modernization, the establishment of HD Hyundai’s facility signals a renewed interest in the sector. The Philippines has the potential to leverage its geographical advantages and skilled workforce to attract further investments in shipbuilding and related industries. The government and stakeholders must collaborate to create a favorable environment for investors and ensure the sustainability of the industry.
As the global demand for ships continues to rise, the Philippines stands at a crossroads. The successful operation of HD Hyundai Heavy Industries could pave the way for a revitalized shipbuilding sector, contributing to the country’s economic growth and enhancing its maritime capabilities. The future of the industry depends on the collective efforts of the government, investors, and the local workforce to seize the opportunities presented by this new chapter in Philippine shipbuilding.
