HD Hyundai Launches First Vessel Built at Revived Subic Bay Shipyard

HD Hyundai has launched the first vessel built at its newly established Subic Bay shipyard, marking the start of full-scale shipbuilding operations at a facility that is central to the South Korean company’s long-term expansion in the Philippines.

The Orion Jade, the first in a four-vessel series, was launched this week by HD Hyundai Heavy Industries Philippines (HHIP), becoming the first ship completed at the Subic yard since HD Hyundai took over operations there. The vessel measures 250 meters in length, 42 meters in breadth, and 21 meters in depth.

“Today’s launching marks a historic milestone for HHIP,” HHIP President Im Dae Jun said during the ceremony. “It’s the third time we have transformed our vision into reality, and today, we proudly celebrate another important step in our journey.”

He credited the Philippine government, the Subic Bay Metropolitan Authority, customers, suppliers, contractors, and employees for supporting the project.

Philippine Finance Secretary and investment czar Frederick Go said the launch demonstrates that the country’s efforts to attract major industrial investments are translating into new manufacturing activity and employment.

“The launch of the Orion Jade is a testament to the Marcos Jr. administration’s efforts to attract strategic investments and ensure that these commitments materialize into projects that generate quality jobs, strengthen our industrial capabilities, and create meaningful economic opportunities for Filipinos,” Go said.

According to Go, the shipyard currently employs nearly 4,000 workers, with that figure expected to roughly double as production ramps up.

Beyond expanding capacity, HD Hyundai has partnered with the Philippines’ Technical Education and Skills Development Authority (TESDA) to develop skilled workers for the country’s shipbuilding sector, aligning vocational training with industry needs.

Construction of the first vessels at the yard officially began in September 2025 with a steel-cutting ceremony attended by Philippine President Ferdinand Marcos Jr.

Reviving a Major Shipbuilding Hub

The launch represents another milestone in the revival of the former Hanjin Heavy Industries shipyard at Subic Bay, once one of the world’s largest shipbuilding facilities. Operations at the yard came to a halt after Hanjin Philippines collapsed in 2019, dealing a major blow to the country’s shipbuilding industry.

HD Hyundai entered the project in 2024 after agreeing to lease part of the Subic Bay facility from a Philippine affiliate of Cerberus Capital Management, which acquired the shipyard following Hanjin’s bankruptcy.

At the time, HD Hyundai said it planned to invest approximately $550 million over 10 years, with the Philippine government projecting the project could create around 10,000 jobs within three to five years.

The company initially planned to manufacture offshore wind structures at the yard before expanding into commercial shipbuilding.

HD Hyundai already has a significant presence in the Philippines through naval programs. In 2022, the company secured a $573 million contract to build six 2,400-ton offshore patrol vessels for the Philippine Navy and has previously supplied frigates and other naval platforms to the country.

The launch of Orion Jade marks the first tangible result of HD Hyundai’s effort to reestablish large-scale shipbuilding at Subic, restoring commercial ship construction to a yard that was once a cornerstone of the Philippine maritime industry.

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