HD Korea Shipbuilding & Offshore Engineering Co. (KSOE), the overarching entity of the world’s leading shipbuilder, is making significant strides in the offshore wind sector by establishing its first overseas base camp in the Philippines. This move positions the company at the heart of the Asia Pacific offshore wind market, aiming to capitalize on the region’s growing renewable energy demand.
On Wednesday, KSOE announced a pivotal lease agreement with US private equity firm Cerberus Capital Management for space and facilities at the Subic Bay shipyard, known as Subic Yard. This site, about 110 kilometers northwest of Manila, was previously managed by Hanjin Heavy Industries & Construction and ceased operations in 2019 due to a downturn in the shipbuilding industry. The New York-based Cerberus acquired the shipyard in 2022, which now partially houses the Philippine Navy.
KSOE’s vision for the Subic Yard is ambitious. The company plans to transform the location into a maritime industrial hub focused on manufacturing floating platforms for wind turbines and shipbuilding modules. Additionally, the site will expand its maintenance, repair, and overhaul (MRO) services for both commercial vessels and warships.
This strategic decision taps into the Philippines’ advantageous position in the booming Asia Pacific wind power market, which includes countries like Australia, Taiwan, Japan, Vietnam, and India. According to Global Market Insights, this market, valued at $68 billion in 2023, is projected to grow at a compound annual growth rate of 5.5% from 2024 to 2032.
HD KSOE’s expansion into the Philippines follows another recent initiative—an MOU signed last month with Scottish entities to develop floating offshore wind farms in Scotland, further underscoring the company’s commitment to renewable energy.
In addition to wind power, the Subic Yard will also support HD Hyundai Heavy Industries Co. (HHI), KSOE’s primary shipbuilding unit and the world’s largest shipbuilder, in delivering MRO services for battleships previously sold to the Philippine Navy. This facility, established in 2022, is set to handle an increasing number of MRO orders due to HD Hyundai Heavy’s strategic positioning in Southeast Asia, which includes an office for specialty ship engineering in Manila opened in March.
Through these concerted efforts, KSOE is not only enhancing its capabilities in traditional shipbuilding but also spearheading its advancement into the renewable energy sector, setting a precedent for future expansions and sustainability initiatives in the global maritime industry.
