HD Hyundai and Hanwha Group are weighing a proposal to acquire the Subic Shipyard in the Philippines, expanding their naval defense capabilities in Southeast Asia as geopolitical tensions fuel demand for maritime military assets.
The shipyard, once operated by bankrupt Hanjin Heavy Industries, ranks among the world’s top five facilities and is currently owned by U.S. private equity firm Cerberus, which acquired it in 2019. The Philippine Navy currently leases the facility for ship repairs.
HD Hyundai has been in discussions with the U.S. Department of Defense about acquiring Southeast Asian shipyards for maintenance, repair, and overhaul operations. The company has already committed 600 billion won ($441 million) in exchangeable bonds to strengthen its eco-friendly initiatives and engine production.
Industry analysts note the companies’ contrasting approaches reflect their corporate cultures, with Hanwha aggressively pursuing defense-focused acquisitions while HD Hyundai remains more cautious and centered on commercial shipbuilding with defense as a secondary focus.
