HD Hyundai opens office in Philippines
HD Hyundai Heavy Industries (HHI) picked the Philippines as the foothold to expand its presence in the Southeast Asian naval ship market, which is expected to grow to a value of $10 billion in 2030, the shipbuilding unit of HD Hyundai said Thursday.
The shipbuilder recently opened a naval ship engineering office in Bonifacio Global City, a financial district located 11 kilometers southeast of the Philippine capital city of Manila.
Joo Won-ho, HD HHI’s head of naval and special ship business unit, and around 30 people attended the office’s opening ceremony, Wednesday (local time). The participants also included Joselito Ramos, undersecretary of the Philippine National Defense for Acquisition and Resource Management; Caesar Valencia, vice commander of the Philippine Navy and Joseph Coyme, commanding officer of the Philippine Coast Guard.
The Korean firm explained that it opened the office to promptly cope with the soaring demand for weapons in Southeast Asia, amid the rapidly changing geopolitical situation.
In particular, the Philippine warship market is said to have a huge growth potential, as the country’s location has increased its need for a more powerful navy.
HD HHI plans to send its engineers and employees in charge of sales of naval ships to the new office, so that the company can provide optimized technical support and consulting that can satisfy the region’s demand.
In addition, it seeks to increase its naval ship exports to Southeast Asian countries.
“Janes, a British intelligence company specializing in military and national security, expects Southeast Asian countries to spend a combined $10 billion for maritime
defense, up $8 billion in 2023,” HD HHI said.
The company added that it aims to generate 2 trillion won ($1.5 billion) in annual revenue from its naval ship business by strengthening its relations with defense industry officials in the Philippines, Thailand and Vietnam.
“Our Philippine naval ship engineering office will be the base for our expansion into the global market beyond Southeast Asia,” Joo said. “Based on our advanced naval ship technologies, we will improve the reputation of the Korean defense industry and seek a mutual growth with Southeast Asian countries.”
HD HHI has already been recognized by the Philippine government for its naval ship technologies.
The Southeast Asian country asked the Korean firm to build two frigates in 2016, two corvettes in 2021 and six offshore patrol vessels in 2022 to modernize and reinforce the country’s naval forces.