Defense Secretary Gilberto Teodoro Jr. on Monday welcomed the possible establishment of a joint United States–Philippines ammunition production and storage facility in Subic Bay, Zambales.

In a press conference in Makati City, Teodoro said the Department of National Defense (DND) is considering the construction plan but has yet to receive a formal proposal from its US counterpart.

"And any production entity which will be of benefit to the Philippines, and not only in terms of our resilience, but improving, giving employment and other technological transfers, is definitely encouraged, being a like-minded and a treaty partner in itself," Teodoro told reporters.

The initiative is currently being considered by US lawmakers, citing the absence of a forward-staged ammunition manufacturing site in the Indo-Pacific region as a key reason for the move.

The US House Committee on Appropriations, in a report dated 16 June 2025, has directed the Department of Defense (DOD), the Department of State, and the International Development Finance Corporation (IDFC) to conduct a feasibility study on establishing the facility at the former US naval base in Subic.

Teodoro emphasized that any venture offering benefits to the Philippines, particularly those that strengthen national resilience, generate employment, and support technology transfer, "would be a welcome development."

“Any production site that can help with technological transfers, employment, and revenue here is welcome, especially if it promotes sustainability and the use of the products locally,” Teodoro said in mixed Filipino and English during a separate ambush interview in Makati City.

“From a purely commercial standpoint, this is a defense industry that will employ Filipinos within the special export processing zone," he added.

However, the defense chief clarified that no formal proposal has been presented yet.

“That’s putting the cart before the horse. I’ve only heard about this through the media. As far as I know, there is no definite proposal,” he said.

The US committee emphasized that the facility would enable the "forward staging of ammunition stockpiles and related materials" to strengthen regional security.

It also instructed Secretary of State Pete Hegseth to report on the progress of the feasibility study within 60 days following the enactment of the proposed 2026 budget.

The United States operated a naval base in Subic Bay until 1991, when the Philippine Senate voted to reject an extension of the lease for American military facilities in the country, effectively ending US military presence at the site.