Philippine President Ferdinand Marcos Jr: Cerberus, Hyundai tie up to restore Philippine shipbuilding glory days

2024 May 14

MANILA – The partnership between US equity firm Cerberus and South Korea’s HD Hyundai Heavy Industries in the strategically located Subic Bay will allow the Philippines to regain its footing in the global shipbuilding industry, President Ferdinand R. Marcos Jr. said Tuesday.

During the announcement of the partnership in Malacañang, Marcos welcomed the two global companies to the Philippines and expressed optimism about the project’s potential impact on the country’s economy.

He said Hyundai’s investment would not only open “new doors for our offshore wind industry but will also bring maritime manufacturing back to Subic and eventually restore the glory days of shipbuilding to our shores.”

“Not only would it generate thousands of jobs, but also enable the transfer of critical skills and improve the Philippines’ position in the global market,” he said.

“The Philippines is also quite excited to see the realization of Cerberus’ plans, including its interest in microelectronics, semiconductors, and critical metals.”

Hyundai already performs ship repairs and maintenance at the Aguila Subic yard, which Cerberus acquired in 2022 after its former owner went bankrupt.

In his message, Marcos noted that since Cerberus’ takeover of the shipyard, it has been “hard at work to revitalize the shipyard” and even attracted other tenants, including Sancom, the world’s leading subsea cable company, and V2X, a global logistics corporation.

Cerberus is a global alternative investment firm with assets across credit, private equity, and real estate strategies.

“And you have worked closely with our Philippine Navy while establishing a world-class operating base for our Navy,” he said.

Currently, the Philippine Navy has a naval operating base in Subic with nearly 1,000 personnel.

The Chief Executive also acknowledged HG Hyundai, one of the largest producers of ships in the world, saying that its foray into the country would “usher in a new era of shipbuilding” in the Philippines.

In 2022, according to Marcos, the country was the seventh-largest shipbuilder in the world, contributing almost 400,000 gross tons of newly built sea and ocean-going vessels.

“This is a far cry from our capacity in the past, and even far behind the output of shipbuilding behemoths like South Korea and Japan,” he said.

“With this initiative of Cerberus and HG Hyundai, we will have a fresh start and a strong foundation in realizing our vision to be amongst the largest and most consequential shipbuilders in the world.”

Darryl John Esguerra (PNA)