Offshore Wind Substructure Fabrication and Ship MRO Utilization
Operation Plan Announcement Event at the Philippine President's Residence
HD Korea Shipbuilding & Offshore Engineering is set to actively enter the offshore wind power business by establishing an overseas production base.
On the 15th, HD Korea Shipbuilding & Offshore Engineering announced that it has leased part of the land and facilities at the Subic Yard in the Philippines to expand its offshore wind power substructure manufacturing and ship maintenance, repair, and overhaul (MRO) business, and will coordinate detailed conditions going forward.
The day before, HD Korea Shipbuilding & Offshore Engineering held an event at the Malaca?ang Palace, the presidential residence of the Philippines, attended by Philippine President Ferdinand Marcos Jr. and others, where it announced future operational plans for the Subic Yard together with Severus Capital, a US-based private equity fund.
The event was attended by Kim Sung-jun, CEO of HD Korea Shipbuilding & Offshore Engineering; Joo Won-ho, Head of HD Hyundai Heavy Industries’ Special Ship Business; Fredrik Go, Special Economic and Investment Advisor; Eduardo Alino, Director of the Subic Bay Freeport Zone Authority; Lee Sang-hwa, South Korean Ambassador to the Philippines; MaryKay Carlson, US Ambassador to the Philippines; and representatives from Severus Capital.
On the 14th, HD Hyundai Heavy Industries held an event at the Philippine presidential residence with the US private equity firm Cerberus Capital to announce future operational plans for the Subic yard. Kim Seong-jun, CEO of HD Hyundai Heavy Industries (from the left), Ferdinand Marcos Jr., President of the Philippines, and Alex Bernard, Asia Head of Cerberus Capital [Photo by HD Hyundai Heavy Industries]
Located in Subic Bay, 110 km northwest of the capital Manila, the Subic Yard was established in 2006 by Hanjin Heavy Industries (now HJ Heavy Industries). It continued shipbuilding operations until 2019, when it ceased operations due to the global downturn in the shipbuilding industry. Currently, Severus Capital owns the yard, and the Philippine Navy uses it as a naval base. Previously, in 2022, HD Hyundai Heavy Industries set up a military support center within the Subic Yard to support MRO activities for vessels delivered to the Philippine Navy.
The Philippines is positioned at the center of the Asia-Pacific offshore wind market, which is expected to grow rapidly from 2030 to 2050, making it an optimal location for establishing an offshore wind power production base. In April, HD Hyundai Heavy Industries signed an MOU with Scottish economic development organizations to cooperate on floating offshore wind projects, and plans to accelerate the expansion of its offshore wind business through the lease of the Subic Yard.
HD Korea Shipbuilding & Offshore Engineering intends to develop the Subic Yard into a marine complex capable of manufacturing offshore wind substructures, ship blocks, and ship repairs through close cooperation with the Philippine government.
Kim Sung-jun, CEO of HD Korea Shipbuilding & Offshore Engineering, said, "This cooperation is a cornerstone leading close economic collaboration between Korea and the Philippines. We will leverage HD Korea Shipbuilding & Offshore Engineering’s global operational experience and expertise to ensure the early operation and stabilization of the Subic Yard."
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