HD Korea Shipbuilding & Offshore Engineering , the intermediate holding company for shipbuilding under HD Hyundai, announced  that it conducted a steel-cutting ceremony for the construction of a 115,000-ton petrochemical carrier at HD Hyundai Philippines Shipyard located in Subic Bay, Philippines.

This vessel is the first to be built by HD Hyundai Philippines and is the first of a series of four ships ordered by an Asia-based shipping company in December last year. The steel-cutting ceremony, which involves cutting the first steel plate for ship construction, signifies the commencement of the building process.

The event was attended by Ferdinand Marcos Jr., President of the Philippines, MaryKay Carlson, U.S. ambassador to the Philippines, Lee Sang-hwa, Korean ambassador to the Philippines, and Kim Sung-joon, CEO of HD KSOE, among others. HD KSOE launched its second overseas shipyard in May last year after signing a lease agreement with global private equity fund Cerberus Capital for part of the Philippine shipyard site.

HD KSOE expects HD Hyundai Philippines to play a crucial role in regaining competitiveness and reclaiming market share in the general merchant ship sector, including bulk carriers and tankers, where Korean shipyards have been struggling against Chinese competition. HD Hyundai Heavy Industries, a subsidiary of HD KSOE, established a military support center in the Philippines in 2022 and has been conducting maintenance, repair, and overhaul (MRO) operations for naval vessels.

HD KSOE plans to build a cooperative system with the Philippine government based on its accumulated experience and technological capabilities. It also aims to explore strengthening economic and security cooperation among Korea, the United States, and the Philippines using HD Hyundai Philippines. A company official explained, “We plan to utilize HD Hyundai Philippines as another strategic stronghold for the ‘MASGA’ project.”

The company also anticipates maximizing efficiency through collaboration between HD Hyundai Philippines and nearby overseas bases. HD Hyundai Philippines is geographically close to HD Hyundai Vietnam Shipbuilding, HD Hyundai Vina (tentative name), and the Singapore investment corporation (planned), enabling the utilization of mutual supply chains for blocks and ship tanks, as well as organic workforce management.

Kim Sung-joon, CEO of HD KSOE, stated, “The Philippines is emerging as a rising shipbuilding power with government support, blessed natural environment, and excellent human resources,” adding, “We will further strengthen our global order competitiveness by utilizing HD Hyundai Philippines.”

Ferdinand Marcos Jr. (second from left), President of the Philippines, and Kim Sung-joon (third from left), CEO of HD Korea Shipbuilding & Offshore Engineering, engage in conversation while touring HD Hyundai Philippines Shipyard. (Photo courtesy of HD Hyundai)

Source:Business Korea