SBMA: Deal for Hanjin shipyard completed soon

MANILA, Philippines — Negotiations for the takeover of Hanjin Heavy Industries and Construction Philippines’ shipyard in Subic are expected to be concluded soon, the Subic Bay Metropolitan Authority (SBMA) said.

“We are nearing completion. Paper works have already been laid out and done,” Karen Magno, manager for the business and investment department for manufacturing and maritime at SBMA, said during the Semiconductor and Electronics Industries in the Philippines Foundation Inc.’s Business and Investment Climate webinar held yesterday.

SBMA hosts a shipyard facility of South Korea’s Hanjin, which declared bankruptcy in 2019.

American private equity firm Cerberus Capital Management and Australian shipbuilder Austal have teamed up and expressed interest in the Subic facility.

“We were even talking to the Philippine Navy because as we already know, they are going to be a tenant of this American company,” Magno said.

The Philippine Navy plans to use a portion or 100 hectares of the Hanjin shipyard facility for its fleet.

It was earlier reported that Philippine Navy chief Vice Adm. Giovanni Carlo Bacordo signed a term sheet for the planned use of a portion of Hanjin’s facility.

Last month, Australian Ambassador to the Philippines Steven Robinson said the negotiations for the Hanjin facility could be finalized in two months.

“There has been some work going on over the last couple of years now with respect to the Subic Bay facility and that involves Austal and a number of other entities, and I am hopeful that there will be some progress made in the next month or two that will see a finalization of all those negotiations,” he said.

Hanjin started operations at the Subic facility in 2006 and was engaged in building high-value vessels.

At the peak of its operations, it employed 30,000 workers.

In the same event, Magno said the SBMA is looking to attract firms engaged in the electronics industry.

She said the SBMA is working with the Board of Investments for the conduct of investment missions and invites existing investors to take part and share their experience during such events.