Seven years since the collapse of Hanjin Heavy Industries and Construction-Philippines in 2019, the country’s shipbuilding industry took a major step towards revival with the launch of Orion Jade, the first vessel built by HD Hyundai Heavy Industries Philippines (HHIP) at the Agila Subic Shipyard.
The 115,000-ton crude oil tanker was formally inaugurated on Tuesday, July 28. Officials said the project reflects renewed investments in the country’s shipbuilding sector and positions Subic as Hyundai’s primary manufacturing hub in Southeast Asia.
‘Orion Jade’ is the first vessel to be fully constructed at the facility by HD Hyundai, one of the world’s largest shipbuilders, since it began operating in Subic.
The tanker measures 250 meters long, 42 meters wide, and 21 meters deep, underscoring the shipyard’s capability to produce large ocean-going vessels
Among those who attended were Republic of Korea Ambassador Lee Sang-hwa, Special Assistant to the President for Investment and Economic Affairs Frederick D. Go, Customs Commissioner Ariel F. Nepomuceno, Botolan Mayor Jun Omar Ebdane, and Olongapo City Mayor Rolen Paulino Jr.
Go said the vessel’s completion demonstrates the Marcos administration’s success in attracting strategic investments.
‘The Orion Jade launch is a testament to our commitment to delivering projects that create quality jobs, enhance industrial capacity, and generate meaningful economic opportunities for Filipinos,’ he said.
During the ceremony, Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Eduardo Jose Aliño said the project demonstrates growing investor confidence in the country.
Aliño attributed the investment to the CREATE MORE Law (Republic Act No. 12066), which reduced the corporate income tax rate to 20 percent, streamlined local business taxes, and expedited value-added tax refunds, to make the country more attractive to investors.
Korean Ambassador Lee said the launch of a Filipino-built vessel symbolizes the growing partnership between the Philippines and South Korea and supports President Ferdinand Marcos Jr.’s goal of restoring the country’s position as a major global shipbuilding player.
‘Maritime cooperation between our countries continues to grow, further strengthening mutual trust and sharing a promising future,’ Lee said.
HD Hyundai currently employs about 4,000 workers at the Agila Subic Shipyard and plans to increase its workforce to 7,000 as operations expand.
The company provides free on-site accommodation, shuttle services, complimentary meals, and health coverage beginning on employees’ first work anniversary.
The launch took place at the shipyard’s 550-meter dry dock-the largest in the Philippines- which will enable HD Hyundai to build at least 10 vessels annually beginning next year.
Hanjin Heavy Industries and Construction-Philippines began operations in Subic in 2006, making the Philippines the world’s fifth-largest shipbuilding nation, and delivering at least 94 ships while employing around 30,000 workers at its peak, mostly from Olongapo City and the neighboring provinces of Zambales and Bataan.
Its bankruptcy in 2019, following years of declining global shipbuilding demand, resulted in the country’s biggest corporate default and displaced thousands of workers.
The future of the 310-hectare shipyard remained uncertain until 2022, when New York-based Cerberus Capital Management acquired the distressed property, now known as Agila Subic Shipyard, investing an initial $40 million to restore operations.
Today, the multi-use facility hosts four major tenants, including HD Hyundai, which occupies about 100 hectares for shipbuilding, ship repair, and offshore wind platform construction.
Other tenants include the Philippine Navy, subsea communications company SubCom, and logistics firm V2X.
Agila Subic officials earlier said that the facility is expected to employ up to 10,000 workers by 2027, with total investments projected to approach $1 billion, signaling a broader revitalization of one of the country’s most strategically important industrial sites.