Cerberus Capital Management (Cerberus) is rebuilding Subic Bay’s shipbuilding capacity as it intends to hire 2,000 workers after firming a long-term lease agreement with Agila Subic Compass (Agila Subic), in partnership with leading maritime manufacturer HD Korea Shipbuilding and Offshore Engineering (HD Hyundai KSOE).
The multi-lease agreement is for the establishment of an offshore wind platform for renewable energy production.
“When we acquired the Hanjin facility two years ago, we set out to revitalize the shipyard, repurpose the site into a multi-use facility, and bring thousands of jobs to the Subic Bay region,” said Cerberus senior managing director and Cerberus Frontier co-head Alexander Benard.
“We’re pleased to take the next step in delivering on that vision by partnering with a premier global shipbuilding and offshore engineering company to make a substantial commitment to the future of Subic Bay and its surrounding communities,” he said.
Cerberus announced the agreement at a commemorative event at Malacañang on Tuesday with President Ferdinand Marcos, Jr. in attendance.
The agreement is expected to create thousands of jobs, and result in substantial capital investments to upgrade and renovate the facility. HD Hyundai KSOE is expected to commence site preparations in the near-term and aims to start operations within the next 12 to 18 months.
Benard underscored the investments of HD Hyundai KSOE as a historic milestone for the country in its efforts to revitalize major maritime manufacturing operations in the Philippines.
HD Hyundai and its affiliates have been global leaders in shipbuilding and offshore engineering.
“We are grateful for the support of the Philippine government, the Subic Bay Metropolitan Authority as well as the US and Korean governments in helping make this partnership with HD Hyundai KSOE a reality,” said Mark Millan, general manager of Agila Subic.
HD Korea shipbuilding and offshore engineering chief executive Sungjoon Kim bared HD Hyundai’s plans to build a state-of-the-art maritime complex capable of handling offshore wind structures, ship block fabrication, ship repairs and other services.
“This initiative represents a major opportunity to create jobs and reinvigorate the local economy, which will help to further establish the Philippines as a global maritime powerhouse,” he said.
The entry of HD Hyundai into the local maritime space is also expected to attract more foreign investments and pave the way for the transfer of world-class skills, knowledge and expertise to the Philippine labor force.
HD Hyundai KSOE will join a base of high-quality tenants at the Subic Bay facility, including leading global subsea cable company Subcom, logistics company V2X and the Philippine Navy that occupies 100 hectares in the northern portion of the site.