HD Hyundai, a major South Korean shipbuilder, is accelerating its foray into the offshore wind industry by establishing an overseas manufacturing base. (Image courtesy of HD Hyundai)
SEOUL, May 16 (Korea Bizwire) – HD Hyundai, a major South Korean shipbuilder, is accelerating its foray into the offshore wind industry by establishing an overseas manufacturing base.
The company has decided to lease a portion of the land and facilities at the Subic Shipyard in the Philippines, aimed at expanding its production of offshore wind foundation structures as well as maintenance, repair, and overhaul (MRO) services for naval vessels.
On May 14, HD Hyundai unveiled the news of the lease and its future operational plans for the Subic facility during an event held at the Malacañang Palace, attended by President Ferdinand Marcos Jr. and other officials.
Situated 110 kilometers northwest of the capital Manila, the Subic Shipyard was previously operated by the now-defunct Hanjin Heavy Industries from 2006 until its closure in 2019 due to a downturn in the shipbuilding market. Currently owned by the U.S. private equity firm Cerberus Capital Management, the yard has been utilized as a naval base by the Philippine Navy.
In 2022, HD Hyundai’s shipbuilding affiliate, HD Hyundai Heavy Industries, established a naval support center within the Subic premises to provide MRO services for vessels delivered to the Philippine Navy.
The Philippines’ strategic location at the heart of the rapidly growing Asia-Pacific offshore wind markets, including Australia, Taiwan, Japan, Vietnam, India, and the Philippines itself, makes the Subic Shipyard an optimal site for an offshore wind manufacturing hub, and is expected to experience a surge in demand between 2030 and 2050.
Earlier in April, HD Hyundai Heavy Industries signed a memorandum of understanding with Scottish economic development agencies to collaborate on floating offshore wind projects.
Through cooperation with the Philippine government, HD Hyundai plans to transform the Subic Shipyard into a maritime complex capable of producing offshore wind substructures, ship blocks, and vessel repairs.
“This bilateral collaboration will serve as a cornerstone for closer economic cooperation between South Korea and the Philippines,” said Kim Sung-joon, CEO of HD Hyundai. “We will leverage HD Hyundai’s operational expertise and know-how to facilitate the early commencement and stabilization of operations at the Subic Shipyard.”
Kevin Lee (kevinlee@koreabizwire.com)
