American investment firm Cerberus Capital Management (CCM) on Wednesday formally announced that it has entered into a multi-year agreement with Agila Subic Compass (ASC) to house the leading maritime manufacturer HD Hyundai Korea Shipbuilding and Offshore Engineering (KSOE) at Agila’s facility in Subic Bay, Zambales.
The arrival of HD Hyundai KSOE in Subic is a historic milestone for the country in its efforts to revitalize major maritime manufacturing operations in the Philippines. It plans to build a state-of-the-art maritime complex capable of handling offshore wind structures, ship block fabrication, ship repairs and other services.
CCM is an American global alternative investment firm with assets across credit, private equity and real estate strategies, while ASC was formerly owned and operated by shipbuilding firm Hanjin Heavy Industries and Construction Philippines.
HD Hyundai KSOE and its affiliates have been global leaders in shipbuilding and offshore engineering for half a century.
The agreement is projected to create thousands of jobs and facilitates substantial capital investments to upgrade and renovate the facility.
HD Hyundai KSOE is expected to commence site preparations in the near-term and aims to start operations within the next 12 to 18 months, according to Alexander Benard, senior managing director at CCM and co-head of Cerberus Frontier.
“When we acquired the Hanjin facility two years ago, we set out to revitalize the shipyard, repurpose the site into a multi-use facility, and bring thousands of jobs to the Subic Bay region. We’re pleased to take the next step in delivering on that vision by partnering with a premier global shipbuilding and offshore engineering company to make a substantial commitment to the future of Subic Bay and its surrounding communities,” said Frontier in a virtual press conference on Wednesday.
For his part, Mark Millan, general manager of ASC, thanked CCM and the United States and Korean governments in helping make the partnership with HD Hyundai KSOE a reality.
HD Hyundai KSOE CEO Sungjoon Kim said the timing of Hyundai’s decision to lease the facility in Subic is auspicious as this year marks the 75th anniversary of Korea’s diplomatic ties with the Philippines, describing it as a milestone they are “proud to honor as HD Hyundai embarks on groundbreaking new collaborations with the Philippines.”
“This initiative represents a major opportunity to create jobs and reinvigorate the local economy, which will help to further establish the Philippines as a global maritime powerhouse,” Kim said.
The entry of HD Hyundai KSOE is also expected to attract more foreign investments and will pave the way for the transfer of world-class skills, knowledge and expertise to the Philippine labor force.
HD Hyundai KSOE will join a base of high-quality tenants at the Subic Bay facility, including leading global subsea cable company Subcom, logistics company V2X, and the Philippine Navy, which occupies 100 hectares in the northern portion of the site.
