NEWS

HD Korea Shipbuilding & Offshore Engineering (HDKSOE) is making its full-pledged foray into the offshore wind power business by building an overseas manufacturing base. 

HDKSOE announced its decision to lease some of the land and facilities at the Subic Yard in the Philippines to manufacture offshore wind power substructures and expand ship MRO services, the specifics of which will be coordinated in the future.

HDKSOE organized an event with Cerberus Capital Management at the Malacanang Palae, the official residence of the Philippine President on May 14, with the presence of Philippine President Ferdinand Marcos Jr., to announce future operation plans for the Subic Yard.

The event was attended by high-profile figures including Kim Sung-joon, CEO of HDKSOE; Joo Won-ho, Head of Naval and Special Ship Business Unit at HD Hyundai Heavy Industries (HHI); H.E. Ferdinand Marcos Jr., Philippine President; Frederick D. Go, Special Assistant to the President for Investment and Economic Affairs; Eduardo Alino, Chairman and Administrator of Subic Bay Metropolitan Authority (SBMA); and other related parties.

Located in Subic Bay, 110km northwest of the capital Manila, the Philippine Subic Yard was created by Hanjin Heavy Industries (now HJ Shipbuilding Construction) in 2006. Since then, the shipyard has continued to build ships until 2019, when operations were halted due to the global downturn in the shipbuilding market. The shipyard is currently owned by Cerberus Capital Management, a U.S.-based private equity firm, and is being used as a naval base by the Philippine Navy. HHI installed a logistics support center within the Subic yard in 2022 to support MRO services for vessels delivered to the Philippine Navy.

In particular, since the Philippines is located at the center of the Asia-Pacific offshore wind power market, spanning from Australia, Taiwan, Japan, Vietnam, India, to the Philippines, which is expected to grow sharply between 2030 and 2050, it is considered an optimal location for establishing an offshore wind power production base.

Prior to this move, HHI signed an MOU with the Scottish Enterprise (SE) and Highlands & Islands Enterprise (HIE) to cooperate on floating offshore wind projects in Scotland. Taking this opportunity to build an overseas production base, it plans to spur its expansion of wind power business. 

HDKSOE, in close cooperation with the Philippine government, has decided to develop the Subic Yard into a marine complex capable of manufacturing offshore wind power substructures and ship blocks and providing MRO services.

Kim Sung-joon, CEO of HDKSOE, said, “I am confident that this bilateral cooperation will serve as the cornerstone for closer economic cooperation between Korea and the Philippines,” and added, “We will strive to ensure early operation and stabilization of the Subic yard by leveraging our global operation experience and know-how.”