Hanjin Heavy Industries and Construction Philippines, also known as HHIC Phil, was a Philippines-based shipbuilding company established in February 2006 by Hanjin Heavy Industries and Construction of South Korea. In the same month, its first shipbuilding contract was signed for four container ships. In May 2006, the construction of a shipyard began on Redondo Peninsula, on the western edge of Subic Bay.^{[citation needed]}

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Quick Facts Industry, Founded ...

Hanjin Heavy Industries and Construction Philippines

Industry	Shipbuilding
Founded	February 2006; 18 years ago (2006-02)
Headquarters	Philippines
Areas served	Worldwide
Services	Shipbuilding
Number of employees	23,000 (2019[1])
Parent	Hanjin Heavy Industries and Construction
Korean name
Hangul	한진필리핀
Hanja	韓進
Revised Romanization	Hanjin Philippines
McCune–Reischauer	Hanjin Philippines

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The first vessel "Argolikos" was delivered in July 2008 for the Greek ship owner Dioryx.^[2] As of April 2011, the shipyard had delivered 20 ships. In 2013, the shipyard made its first oil tanker, and in 2016, it delivered its first gas carrier. The shipyard has also built parts of CALM buoys used for the Malampaya gas field offshore project. The shipyard also has two large dry docks.^[3]

In January 2019, the company filed for the largest bankruptcy in Philippines history with unpaid loan obligations amounting to US$412 million.^[4]

As part of its overseas expansion process in 2004, Hanjin Heavy Industries and Construction started building a shipyard on the Redondo peninsula, southwest of Subic, Zambales. According to the company's website, this resulted in the world's fourth-largest shipyard. As of September 2011, the shipyard employed 21,000 Filipinos.^{[citation needed]}

On April 18, 2012, according to The New York Times, "a subsidiary of Huntington Ingalls Industries, a United States defense contractor, announced a deal to work with Hanjin Heavy Industries, which maintains a shipbuilding and repair facility at the former base at Subic Bay. That opens the door to large-scale servicing of United States military ships there for the first time in almost 20 years."^[5] Huntington Ingalls said in a news release that the companies "will work together in providing maintenance, repair and logistics services to the U.S. Navy and other customers in the Western Pacific region."^[6]

The company's workforce was expected to increase to nearly 28,000 in 2016. However, a slump in shipbuilding projects limited the workforce to 20,000 as of 2017.^{[citation needed]}

As of September 2017, the company had the largest shipyard in the Philippines and was one of the largest private employers in the country.^{[citation needed]}

The shipyard is located on the eastern side of Redondo peninsula, in Agusuhin sitio, in Zambales province on Luzon.^[7] A large number of Koreans and Romanians who form the upper management of the shipyard live on site in barracks (colloquially called chicken coops). The shipyard occupies land owned by the Subic Bay Metropolitan Authority (SBMA) and was leased out to the company on a 40-year basis.^{[citation needed][needs update]}

Jeepneys and buses hired by the company transport workers between the shipyard and the two nearby towns of Castillejos and Subic, with many workers staying farther out in Olongapo and San Marcelino. Most workers come to work at the company from other parts of the Philippines and stay in boarding houses in these towns. A large ferry and 25 charter buses transport its workers to and from Olongapo daily.^{[citation needed]} Additionally, two smaller company-owned fast ferries transport a small number of the owners' representatives from Hanjin jetty near All Hands Beach, Subic Bay Freeport Zone to the shipyard. Security at the shipyard remains tight due to high pilferage by workers during its early years. The area is also strategically important to the Philippine Armed Forces, and is protected by both HHIC Police and Philippine Armed Forces commandos.^{[citation needed][needs update]}

This section needs to be updated. (August 2022)

On November 22, 2018, the company delivered two recently completed 114,000 deadweight ton crude oil tankers.^[8] However, with 20 vessels in different stages of construction at the time, the company found it difficult to service its high debts or to get further extensions from its lenders. On January 8, 2019, the company filed for corporate restructuring due to default or failure to comply with its loan obligation of $412 million to five Philippine banks, namely Rizal Commercial Banking Corporation, Land Bank, Metrobank, Bank of the Philippine Islands, and Banco de Oro. It became the biggest bankruptcy in the Philippines, surpassing the $386 million default by Lehman Brothers in the Philippines in 2008. As of January 2019^[update], the five banks were working to take over the company's shipyard.^[1] On January 19, 2019, it was reported that two Chinese firms had filed expressions of interest to purchase the shipyard along with its debt.^[9] Subsequently, TradeWinds reported that HHIC Phil and the Philippine government had agreed upon a debt swap deal.^{[10][needs update]}

Australian shipbuilder Austal and US-based private equity firm Cerberus Capital Management considered launching a joint bid to take over the Subic shipyard.^[11] Austal would later drop its bid to have a stake in the shipyard.^[12]

Agila Subic became Cerberus' new partner, taking over the shipyard's operations in March 2022.^[13] Agila Subic is a Dutch venture consisting of four companies that are affiliates of Cerberus.^[14] Accordingly, the shipyard was renamed the Agila Subic Multi-Use Facilities.^[15]

The Philippine Navy began leasing the shipyard's northern section in May 2022.^[16] American defense contractor Vectrus also moved in.^[17]

Cerberus completed its acquisition of the shipyard by April 2022.^[18] In November 2022, SBMA officials welcomed United States Ambassador to the Philippines, MaryKay Carlson, and indicated they wanted to see American military forces return to the Philippine naval base.^[19]

The shipyard builds bulk carriers, container ships, and oil tankers. Additionally, it has undertaken offshore construction work such as building CALM buoys for the Malampaya gas field project.^[25]