HD Hyundai launches first Subic-built ship, marks return of large-scale shipbuilding

South Korean shipbuilding giant HD Hyundai Heavy Industries Philippines (HHIP) has launched its first vessel built in Subic, marking a major milestone in the revival of large-scale shipbuilding at the former Hanjin shipyard.

The Orion Jade, a 115,000-ton crude oil and product tanker, was launched on July 28 at the Agila Subic Shipyard in Redondo Peninsula, less than a year after HD Hyundai formally began shipbuilding operations at the sprawling facility.

Measuring 250 meters long, 42 meters wide and 21 meters deep, the vessel is the first ship fully constructed by HHIP at the Subic facility and signals the Korean shipbuilder's push to establish Subic as a major manufacturing base in Southeast Asia.

The vessel is also the first of four ships ordered by an Asia-based shipping company, with construction of the program beginning following the steel-cutting ceremony in September 2025.

HHIP President Im Dae Jun described the launch as a historic milestone for the company as it ramps up operations at the Subic shipyard.

The launching was witnessed by Finance Secretary Frederick D. Go, Republic of Korea Ambassador Lee Sang-hwa, Subic Bay Metropolitan Authority Chairman and Administrator Eduardo Jose L. Aliño, Customs Commissioner Ariel F. Nepomuceno, Botolan Mayor Jun Omar Ebdane and Olongapo City Mayor Rolen Paulino Jr., among other government and industry officials.

Go said the completion of the Orion Jade demonstrated how foreign investment commitments could translate into actual industrial projects, jobs and expanded manufacturing capability.

“The Orion Jade launch is a testament to our commitment to delivering projects that create quality jobs, enhance industrial capacity, and generate meaningful economic opportunities for Filipinos,” Go said.

Aliño, meanwhile, said the project reflected growing investor confidence in the Subic Bay Freeport and cited incentives provided under the CREATE MORE Law, or Republic Act No. 12066, as among the factors helping attract major investments.

The launch also represents a significant turnaround for the massive Subic shipbuilding facility, which is now being brought back into large-scale vessel production under HD Hyundai.

At the heart of the facility is a 550-meter dry dock, the largest in the Philippines, which will enable HHIP to build at least 10 ships annually beginning next year, according to SBMA.

Korean Ambassador Lee said the Filipino-built vessel also symbolized the expanding maritime and industrial partnership between South Korea and the Philippines.

“Maritime cooperation between our countries continues to grow, further strengthening mutual trust and sharing a promising future,” Lee said.

The project has already generated around 4,000 jobs, with HHIP planning to further expand its workforce as shipbuilding operations increase. The company has also partnered with the Technical Education and Skills Development Authority to develop training programs aimed at supplying skilled workers for the growing shipyard operations.

The Orion Jade's completion places Subic once again on the map of large-scale commercial shipbuilding, years after shipbuilding operations at the former Hanjin facility ceased.

For Subic, the launch marks not simply the completion of another vessel, but the return of an industry that had once made the Freeport one of the country's major shipbuilding centers. (SNL)

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PBBM leads inauguration of HD Hyundai shipyard in Subic

Shipbuilding makes a grand comeback in the Philippine maritime industry.

President Ferdinand R. Marcos Jr. led the inauguration ceremony of HD Hyundai Heavy Industries Philippines Inc. at the Agila Southern Yard, Subic Freeport Zone on September 2, 2025 —a landmark event that marks the revival of the country’s shipbuilding enterprise.

The ceremony formally launched Hyundai’s operations in the Philippines, reinforcing the country’s position as a strategic hub for maritime and industrial growth in the Asia-Pacific region.

A symbolic steel-cutting ceremony marked the commencement of construction on the shipyard’s first vessel, signaling the beginning of a new era for local shipbuilding and engineering capabilities.

The President’s presence underscores the Philippine government’s strong policy support and commitment to attracting long-term, high-impact investments in key industries. 

Long-term employment

In his message, Marcos Jr. emphasized the industry’s capacity to expand operations and provide long-term employment opportunities.

“With Hyundai Heavy Industries investing in Subic, our shipyard capacity will significantly increase from 1.3 million to 2.5 million deadweight tons, from handling four to five massive oil tankers to about eight of those ships,” the President said. 

He also highlighted government programs aimed at preparing more workers for the sector. 

The Technical Education and Skills Development Authority (TESDA) has partnered with Hyundai to operate a training center in Subic, producing its first 24 welding graduates now employed at the yard, while additional training slots have been made available to maintain a steady supply of skilled workers.

Korean Ambassador to the Philippines Lee Sang-hwa said the project reflects the strengthening economic ties between the two countries.

“Today’s event is, above all, a victory for the Philippines. It is a tangible result of President Marcos’ tireless efforts to attract foreign investment through the CREATE More [Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy] Act,” Lee said.

He added that Hyundai is projected to employ 7,000 to 8,000 workers in the coming years, calling the initiative a “powerful tripartite partnership” wherein Korea contributes shipbuilding technology, the United States provides financial support, and the Philippines offers skilled manpower and a strategic location.
 

Global shipbuilding hub 

HD Hyundai Heavy Industries CEO Kim Sung-joon also emphasized the Philippines’ potential to become a global hub for shipbuilding.

“Fortunately, the Philippines possesses all the ideal conditions to become a major player in the shipbuilding industry—with a blessed maritime environment, a young and highly skilled workforce, and the committed support of the government,” he said.

For many, the reopening represents more than industrial revival—it means jobs close to home.

Marlon Eugenio, a former employee of the Hanjin Shipyard, expressed his gratitude.

“Nagpapasalamat ako sa ating pamahalaan lalong lalo na kay Presidente Marcos na nagbigay ng opportunity ulit na mabuksan ang pinakamalaking shipyard. Nabigyan muli ang mga kapwa ko worker na magkaroon ng trabaho at magkaroon ng panibagong talento sa paggawa ng barko,” he said.

HD Hyundai’s Subic operations will cover 200 hectares under a 10-year lease with Agila Subic, a Cerberus portfolio company.

The facility is set to begin full operations in January 2026, including both shipbuilding and offshore wind platform construction. (PCO/PIA Region 3-Zambales)

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PBBM welcomes Cerberus, Hyundai tie up in Subic Bay to restore PH shipbuilding glory days

The partnership between US equity firm Cerberus and South Korea’s HD Hyundai Heavy Industries in the strategically located Subic Bay will allow the Philippines to regain its footing in the global shipbuilding industry, President Ferdinand R. Marcos Jr. said Tuesday. 

During the announcement of the partnership in Malacañang, Marcos welcomed the two global companies to the Philippines and expressed optimism about the project’s potential impact on the country’s economy. 

He said Hyundai's investment would not only open “new doors for our offshore wind industry but will also bring maritime manufacturing back to Subic and eventually restore the glory days of shipbuilding to our shores.” 

“Not only would it generate thousands of jobs, but also enable the transfer of critical skills and improve the Philippines' position in the global market,” he said. 

“The Philippines is also quite excited to see the realization of Cerberus’ plans, including its interest in microelectronics, semiconductors, and critical metals.” 

Hyundai already performs ship repairs and maintenance at the Agila Subic yard, which Cerberus acquired in 2022 after its former owner went bankrupt. 

In his message, Marcos noted that since Cerberus’ takeover of the shipyard, it has been “hard at work to revitalize the shipyard” and even attracted other tenants, including Subcom, the world's leading subsea cable company, and V2X, a global logistics corporation. 

Cerberus is a global alternative investment firm with assets across credit, private equity, and real estate strategies. 

“And you have worked closely with our Philippine Navy while establishing a world-class operating base for our Navy,” he said. 

Currently, the Philippine Navy has a naval operating base in Subic with nearly 1,000 personnel. 

The Chief Executive also acknowledged HG Hyundai, one of the largest producers of ships in the world, saying that its foray into the country would “usher in a new era of shipbuilding” in the Philippines. 

In 2022, according to Marcos, the country was the seventh-largest shipbuilder in the world, contributing almost 400,000 gross tons of newly built sea and ocean-going vessels. 

“This is a far cry from our capacity in the past, and even far behind the output of shipbuilding behemoths like South Korea and Japan,” he said. 

“With this initiative of Cerberus and HG Hyundai, we will have a fresh start and a strong foundation in realizing our vision to be amongst the largest and most consequential shipbuilders in the world.” (PNA)

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SBMA more than happy to accommodate Hyundai Heavy in Subic Freeport

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Rolen C. Paulino welcomed the possibility of South Korean shipbuilder Hyundai Heavy Industries (HHI) investing inside this premier Freeport.

The statement came after outgoing Department of National Defense (DND) Secretary Delfin Lorenzana revealed that the South Korean shipbuilder plans to construct a maintenance depot at the former Hanjin Heavy Industries and Construction Philippines (HHIC-Phil) shipyard in Redondo Peninsula.

“The company plans to have a maintenance depot here since many of our military ships are built by Hyundai. They would provide the maintenance needs of these ships,” he said.

Paulino said that the plans for the construction of HHI’s maintenance depot here would mean more job opportunities, and would generate income to the agency that can be added to the national coffers. He said that the construction of the HHI maintenance depot is more efficient rather than sending the ships back to South Korea for repairs.

Former Secretary Lorenzana cited that the country ordered the Philippine Navy (PN)'s first two missile frigates, BRP Jose Rizal (FF-150) and BRP Antonio Luna (FF-151) from the South Korean shipbuilder. He added that HHI also secured the P28-billion contract for the two anti-submarine corvettes last December and the P30-billion offshore patrol vessel (OPV) deal.

The company is also the contractor for the South Korean Navy's Pohang-class corvettes, of which one is now in service with the PN, with another expected to be transferred soon. The company and the DND signed a lifetime service support contract for the maintenance and upkeep of the two Jose Rizal guided-missile frigates.

Chairman Paulino said that it is only fitting that the company construct its maintenance depot at the former Hanjin shipyard since Agila Subic (now owner of the Hanjin shipyard) is housing the base operations of the Philippine Navy.

 The SBMA chief also cited that after HHIC left, thousands of skilled workers in the shipbuilding sector have been unemployed and are seeking other job opportunities, but were unlucky due to the recent pandemic.

“The investment of Agila Subic has revived the shipbuilding industry of the Subic Bay Freeport back to life. We can expect more job opportunities for skilled shipbuilders in the area since more and more companies are looking into investing into Agila Subic’s shipbuilding industrial park,” he said.

The Philippine Navy occupies the northern portion of the former HHIC-Phil shipyard that spans around 100 hectares of the site's more than 280 hectares.

The activation and subsequent operationalization of NOB Subic are in line with the Navy's scaled-up maritime operations to support the needed base services of the deep-draft vessels such as Jose Rizal-class missile-frigates, Del Pilar-class offshore patrol ships, and Tarlac-class landing docks.

The newly activated base will house select fleet marine units, maintenance, and replenishment facilities that will enable the fleet to sustain the operational requirements of the current and future capital vessels. (MPD-SBMA)

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