Aboitiz Construction Inc. (ACI) on Wednesday said it signed an agreement with shipbuilder Austal Philippines Pty. Ltd., as local subcontractor for the latter’s proposal to build six new offshore patrol vessels (OPV) for the Armed Forces of the Philippines (AFP).

The construction arm of Aboitiz & Co. said should Austal succeed in its proposal, the memorandum of agreement mandates the ACI to undertake the cutting and fabrication of the OPV steel hulls.

The second partnership between the two entities comes after ACI completed its construction of six assembly bays in Austal’s shipyard in Balamban, West Cebu as part of Austal’s $20 million shipyard expansion.

“Our record of repeat international orders throughout these years will show the quality and competitiveness of our fabrication services,” ACI president and chief operating officer Alberto Ignacio said.

“We are equally optimistic about this partnership as we further demonstrate our growing capability as a trusted local contractor for international customers, further enhancing our brand promise to advance business and communities.”

The expanded assembly bays allow OPV to be constructed in the country. Defense Secretary Delfin Lorenzana earlier on said the government is expected to sign the contract with Austal before year-end. The construction of the OPV is part of the modernization of the AFP.

ACI and its international arm, Aboitiz Construction International, Inc., has a 44-year track record of delivering projects in the power, mining, cement, shipbuilding, housing and commercial as well as manufacturing industries.

Austal Philippines, on the other hand, is the local unit of the Australian shipbuilder Austal Ltd. It’s expertise is in the construction of high speed ships for governments, navies, ferry and offshore operators.

Austal is also one of the firms that expressed interest to rescue Hanjin Heavy Industries and Construction Philippines after it was placed under corporate rehabilitation amid financial issues.