HD Hyundai Heavy picks Philippines as Asian base for warship sales

The top South Korean shipbuilder has already won several deals to build warships from Manila

HD Hyundai Heavy executives and senior officials from the Philippines' Defense Ministry and the Navy pose for a photo during the launch ceremony of HHI Engineering Office in Manila

Hyung-Kyu Kim 1

2024-03-07 17:05:54 khk@hankyung.com

Shipping & Shipbuilding

South Korea’s top shipbuilder HD Hyundai Heavy Industries Co. (HHI) said on Thursday it has chosen the Philippines as its base for the sale of warships and other specialty vessels throughout Southeast Asia.

HD Hyundai Heavy, a unit of HD Korea Shipbuilding & Offshore Engineering Co. (KSOE), said it opened an office in charge of specialty ship engineering in Bonifacio, Manila Wednesday.

The company said the office will be staffed with specialty vessel design engineers, maintenance, repair and overhaul (MRO) specialists and marketing officials dispatched from Seoul.

A warship made by Hyundai Heavy for the Philippine Navy

HD Hyundai Heavy established the office to swiftly respond to growing warship demand globally and the Southeast Asian market in particular.

According to British military intelligence provider Janes, Southeast Asia’s maritime defense spending is forecast to grow from $8 billion in 2023 to $10 billion by 2030.

Hyundai Heavy's warship for the South Korean Navy

PHILIPPINES’ HORIZON MILITARY MODERNIZATION INITIATIVE

An HD Hyundai Heavy official said the Philippines will operate as the company’s base camp to expand its warship sales in the fast-growing Southeast Asian market.

Formerly Hyundai Heavy Industries Co., HD Hyundai Heavy has won deals to build two frigates, two patrol ships and six offshore patrol vessels (OPVs) from the Philippine government, which, under the “Horizon” military modernization initiative, is ramping up the acquisition of advanced weapons and equipment to bolster its defense capabilities against emerging threats, including China.

HD Hyundai is Korea's leading shipbuilding, oil refining and machinery conglomerate

“The opening of this specialty ship engineering office today represents our ambitious first step toward becoming a global leader in the special vessel segment,” said Joo Won-ho, HD Hyundai’s specialty vessel business chief, during the opening ceremony in Manila.

HD KSOE, the intermediate holding company of HD Hyundai Co., a shipbuilding, oil refining and machinery conglomerate, has three shipbuilding affiliates under its wing – HD Hyundai Heavy Industries, Hyundai Mipo Dockyard Co. and Hyundai Samho Heavy Industries Co.

Write to Hyung-Kyu Kim at khk@hankyung.com

In-Soo Nam edited this article.