HD Korea Shipbuilding & Offshore Engineering, MASGA to Develop Philippines as Strategic Hub

[Financial News] HD Korea Shipbuilding & Offshore Engineering, the intermediate holding company of HD Hyundai's shipbuilding division, is developing the Philippines as a strategic hub for the MASGA project. This is through establishing a cooperative system with the Philippine government. After signing a lease agreement with Cerberus Capital in May last year for part of the Philippine shipyard site, it has been operating as HD Korea Shipbuilding & Offshore Engineering's second overseas shipyard.
On the 2nd, HD Korea Shipbuilding & Offshore Engineering held a steel cutting ceremony for the construction of a 115,000-ton petrochemical product carrier (PC ship) at the 'HD Hyundai Philippines Shipyard' located in Subic Bay, Philippines.
This ship is the first ship built by HD Hyundai Philippines and is the first of a series of four ships ordered from an Asian shipping company in December last year. The Steel Cutting ceremony marks the beginning of ship construction by cutting the first steel for the ship.
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 Seong-jun, CEO of HD Korea Shipbuilding & Offshore Engineering, who gathered to celebrate the first ship construction of HD Hyundai Philippines. HD Korea Shipbuilding & Offshore Engineering sees HD Hyundai Philippines as a 'game changer' for Korean shipyards struggling in the general cargo ship market, such as bulk carriers and tankers, against China.
Previously, HD Korea Shipbuilding & Offshore Engineering established HD Hyundai Vietnam Shipbuilding in Khanh Hoa Province, Vietnam in 1996, growing it into the largest shipyard in Southeast Asia, building about 10 ships annually.
HD Hyundai Philippines also aims to strengthen economic and security cooperation among Korea, the U.S., and the Philippines. HD Hyundai Heavy Industries, a subsidiary of HD Korea Shipbuilding & Offshore Engineering, established a logistics support center in the Philippines in 2022, conducting MRO (Maintenance, Repair, Overhaul) business for frigates and patrol ships built and delivered to the Philippines.
Efficiency maximization through collaboration with major overseas bases is also expected. HD Hyundai Philippines is geographically close to HD Hyundai Vietnam Shipbuilding, HD Hyundai Vina (tentative name), and the planned Singapore investment corporation, enabling mutual supply chain utilization for blocks and ship tanks and organic workforce operation.
On the 27th, HD Hyundai announced plans to establish an investment corporation in Singapore to manage overseas production bases such as HD Hyundai Vietnam Shipbuilding, HD Hyundai Philippines, and HD Hyundai Vina, overseeing overseas business.
Kim Seong-jun, CEO of HD Korea Shipbuilding & Offshore Engineering, said, “The Philippines, with government support, excellent natural environment, and outstanding human resources, is emerging as a new shipbuilding powerhouse,” adding, “We will further strengthen global order competitiveness by utilizing HD Hyundai Philippines.”
Meanwhile, on the 25th of last month, HD Hyundai signed a Memorandum of Understanding (MOU) with Cerberus Capital and Korea Development Bank for the 'Korea-U.S. Shipbuilding Industry Joint Investment Program', leading the first cooperation after the MASGA project initiative. 
ggg@fnnews.com Kang Gu-gwi Reporter