South Korean shipbuilder HD Hyundai will take over a facility in the Philippines’ Subic Bay, as part of a 10-year lease contract, The Manila Times reports. HD Hyundai will reportedly invest USD 550 mn in the facility over 10 years, reviving the country’s halted shipbuilding industry.

About the project: The facility will span 200 hectares leased from Agila Subic — an abandoned shipyard bought by alternative investment outfit Cerberus in 2022, after its owner, Hanjin Heavy Industries, went bankrupt in 2019, The Manila Times reported separately. The facility will initially construct tankers of up to 250 meters in length over a build time of 16-18 months, before scaling up production capacity to 10 vessels per year, according to the outlet. Operations are set to begin in January 2026.

HD Hyundai’s eyeing a bigger global footprint: The Korean shipbuilder is reportedlyconsidering bidding for the rights to operate the Casablanca shipyard, which would better suit its services to Europe and the Mediterranean. HD Hyundai also set in motion its plans to expand its Vietnam operations late last year, Lloyd’s List reported at the time.

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