US Investment Firm Cerberus and South Korea’s HD Hyundai Partner to Revitalize Shipbuilding in Subic Bay

Jun 2024

President Ferdinand R. Marcos Jr. announced that US equity firm Cerberus and South Korea’s HD Hyundai Heavy Industries have partnered to revitalize the shipbuilding industry in Subic Bay, Philippines. This partnership is expected to boost the country’s economy and strengthen its position in the global shipbuilding market.

During the announcement in Malacañang, President Marcos welcomed the two companies and highlighted the potential economic benefits of Hyundai’s investment. He noted that this initiative would not only create thousands of jobs but also facilitate the transfer of critical skills, enhancing the Philippines’ global market competitiveness.

The partnership will also support the offshore wind industry and restore maritime manufacturing in Subic. Hyundai’s investment is seen as a step towards restoring the country’s shipbuilding prowess, with significant contributions to renewable energy through the development of offshore wind platforms. Hyundai is recognized as one of the world’s largest ship producers.

Cerberus, which acquired the Agila Subic Shipyard in 2022, has been actively revitalizing the shipyard and attracting new tenants. Among these tenants are SubCom, a contractor for undersea cables, and V2X, a provider of critical mission solutions and support to defense clients worldwide. This partnership is anticipated to generate around 10,000 jobs within the next three to five years. Cerberus plans to invest approximately USD 550 million over the span of ten years.

The Philippine government, through this partnership, aims to strengthen the Subic Freeport zone’s role as a hotspot for industrial and economic activities, fostering growth and development across multiple sectors. This initiative aligns with the government’s goals to transition to renewable energy and enhance the country’s shipbuilding capacity.

(Sources: Philippines News Agency; Presidential Communications Office)

About Us

Orissa International helps companies that want to develop a market entry strategy for Southeast Asia or implement their business expansion into the region. We have very strong domain knowledge of markets and industry sectors, and a business network of over 16,000 companies that includes distributors, resellers, system integrators and local manufacturers, that we have built through advising and guiding more than 5,000 companies with their market expansion into the ASEAN region over the last 25 years.

Orissa International is headquartered in Singapore, with additional offices in Malaysia, Indonesia, Thailand, Vietnam, and the Philippines.

Our Services