Company seeks to expand industrial cooperation based on local production hub
HD Hyundai said Tuesday that Chairman Chung Ki-sun met with Philippine Defense Secretary Gilberto Teodoro Jr. in Seoul on Monday to discuss expanding cooperation in shipbuilding and defense.
The two sides reviewed the achievements of the defense cooperation HD Hyundai and the Philippines have built over the past decade. Based on that record, they agreed on the need to broaden the scope of cooperation to include modernizing the Philippine Navy and strengthening the competitiveness of the local shipbuilding industry.
Cooperation between HD Hyundai and the Philippines on naval vessel projects gained momentum in 2016, when the Philippine Navy signed its first frigate contract. Since then, the partnership has continued to expand through new vessel construction and follow-on projects.
The meeting also touched on the launch of operations at HD Hyundai Philippines in Subic last year, which the two sides described as a key turning point in their industrial cooperation. HD Hyundai recently successfully launched the first vessel built at the facility and plans to deliver it to the shipowner next year. The company also plans to strengthen its production capacity there in line with local operating conditions going forward.
"Thanks to the consistent policy and cooperation of the Philippine government and navy, we were able to make a significant contribution to elevating the capabilities of the Philippine Navy, while HD Hyundai was also able to carry out our projects with stability," Chung said.
"Building on the trust between us and the success and expansion of our projects over the past decade, we will continue to explore opportunities for long-term industrial cooperation in a wider range of fields beyond merchant vessel and warship construction," he added.
Teodoro emphasized that cooperation with HD Hyundai is strategically important for modernizing the Philippine Navy and revitalizing the country's shipbuilding industry, and welcomed the company's efforts to expand its business footprint in the Philippines.
Meanwhile, HD Hyundai has also been building up its shipbuilding capabilities across Southeast Asia, including the Philippines. HD Hyundai Vietnam Shipbuilding, the Vietnamese subsidiary of HD Hyundai Heavy, started out in 1996 as a ship repair and conversion company before entering the newbuilding business in the late 2000s. It has since secured orders for more than 200 vessels.
yeongdai@heraldcorp.com
