22 May 2012

Hanjin Plans $700-M New Investments

MANILA - Hanjin, world’s leading ship manufacturer, is expanding its existing shipyard facility in Subic Freeport cementing the Philippines rank as the world’s fourth largest shipbuilder and construct a 200-megawatt power plant for estimated new investments of up to $700 million.

Trade and Industry Undersecretary for International Trade and Investment Promotion Cristino L. Panlilio revealed the Korean firm’s additional investment forays in the country after attending the recent investment promotion conference in Seoul organized by the ASEA-Korean Center where he spoke on the country’s favorable macroeconomic factors.

According to Panlilio, Hanjin through its local unit Hanjin Heavy Industries & Construction – Philippines, Inc. (HHIC-Phil, Inc.) would undertake the construction of its third slipway drydock at a cost of $300 million and plans to put up a 200 megawatt power plant that may cost between $200 million to $400 million.

Of the 200-mw power, Hanjin is expected to allocate between 50 to 60 MW for its own requirement and the rest to be supplied to the national grid.

For its shipyard facility, Panlilio said the construction of the third drydock would enable the facility to further expand its capacity to accept more shiprepair jobs. At present, HHIC-Phil is concentrating on shiprepairs and maintenance jobs because of a global slowdown in orders for new ships.

Panlilio said that Hanjin, which occupies 600-hectare lot in Subic Freeport, is working on a lease contract with Subic Bay Metropolitan Authority for an additional 100 hectares in the Redondo Bay for the new drydock.

The expansion of its Subic facility followed after Hanjin’s decision to abandon its expansion plan in Phividec in Misamis Oriental as it encountered problems with the local government units. In fact, it reservation for a 400-hectare property inside the industrial estate had already expired.

Since its first vessel delivery in 2008, Hanjin has already accumulated worth P125 billion in annual export sales as of the end of 2011.

Jin Kyu Ahn, president of the Korean shipbuilder giant, said that the recent vessel deliveries by Hanjin highlighted the competitiveness of HHIC-Phil’s Subic shipyard which produced the state-of-the-art commercial vessels.

Its newly delivered vessels are: M/T Brightway, a DWT 160,000 Crude Oil Tanker ordered by a Liberian company Modmal Shipping Limited and M/V FMG Matilda, a DWT 205,000 Bulk Carrier owned by Bocimar Hong Kong Ltd. based in Belgium. Both ship owners are engaged in international shipping and maritime solutions.

At present Hanjin employs 20,000 people at its Subic facility and plans to hire more this year.

Ahn said that, once targets for ship orders are reached this year, Hanjin could add over ten thousand workers which “would clearly benefit the Philippine economy, and bring opportunities to Filipino entrepreneurs and skilled workers, and much needed revenue to the Philippine government.”(Bernie Cahiles-Magkilat, Manila Bulletin)