President Ferdinand R. Marcos Jr. expressed optimism Friday on the Philippines’ chances to regain its footing in the global shipbuilding industry with the aggressive investment and expansion of Cerberus Global Investment LLC.
“We’re all very excited about this project and… we have always tried to find a way to regain our position in the shipbuilding. We were already number 2 for awhile, and then when Hanjin closed (we went down),” President Marcos said during a meeting with Cerberus top executives in Malacañang.
Cerberus is a global alternative investment firm with assets across credit, private equity, and real estate strategies.
Former US Vice President and Cerberus chairman James Danforth “Dan” Quayle told the President during the courtesy call that the company isexcited to be a part of the Philippine economic growth story and has been planning more and bigger investments to the Philippines.
Apart from Quayle, the company officials who met the President were Cerberus Co-Chief Executive Frank Bruno and Co-head Alexander Benard.
The Cerberus offer came following the President’s success in the 42nd ASEAN Summit in Labuan Bajo Indonesia earlier this week. Cerberus acquired Subic shipyard in 2022 and has invested $40 million to make the shipyard operational again.
Currently, the Philippine Navy has a naval operating base in Subic with 800 personnel.
Hyundai, one of the most prestigious shipbuilding companies, expressed interest in using two drydocks in Subic for shipbuilding, which, officials said could generate 5,000 to 15,000 jobs.
Hyundai eyes to move to the facility by year end. Cerberus, employing a different approach to investment, wants to ensure diverse economic activity by having multiple companies engaged in various businesses.
The firm also sees value and potential in improving the Subic airport for logistics or cargo and plans to propose to the Subic Bay Metropolitan Authority (SBMA) to convert the airport into a cargo and logistics hub.
Aside from those ventures, Cerberus is also looking to invest in the country’s semiconductors, and energy sectors.
Cerberus subsidiary Subcomm, engaged in building and installing submarine cables, will also move to the facility in August. The move is seen to generate additional employment in the area.
The entry of Hyundai and Subcomm in Subic is seen to create much-needed economic activity in Subic that could also benefit downstream industries in the area.
Cerberus, founded in 1992, manages up to $60 billion in assets globally. The company has experience in direct investments, private equity, growth, and venture transactions in various region and maintains 27 sites around the world.