Hanjin mulls new shipyard in Phivedec

After investing over $1.6 billion in Subic Bay Freeport for a ship building facility, Korea’s grant shilbuilder Hanjin Heavy Industries and Constructions (HHIC) is investing another $1 billion more this time at the state owned Phivedec Industrial Estate in Misamis Oriental for another shipbuilding facility that is one a half times bigger than its Subic facility.

This was announced by President Gloria Arroyo during a rountable with the staff of the Business Bulletin over the weekend. "Hanjin chose us over Vietnam,” the elated President said nothing that “Hanjin would have wanted to expand in Subic but there is no more space.”

The President cited Hnajin because when they decided to invest in Subic it was a close fight with Vietnam but when they decided to expand they still chose to do it in Mindanao.

This makes a total of $2.684 billion worth of investments commited by Hanjin in the country given the $1 billion already infused in its shipbuilding facility in Subic and additional $684 million expansion in Subic.

Trade and Industry Undersecreatary Elmer C. Hernandez also explained that Hanjin’s investmentin Phivedec is an entirely new shipbuilding facility.“They are already talking with Phivedec officials,” Hernandez said.He said that Hanjin has decided to put up another facility in Mindanao because it requires 600 hectares of land which Subic can no longer provide given its limited available space.

The Korean firm is expexted to come in this year, Hernandez said.Just last week, Hanjin announced it is investing an additional $684 million in Subic but this would be used to underwrite the remaining work under the first and second phase of the company’s project and increase HHIC’s investment to US$1.684 billion.

The expansion was made in response to the increasing number of vessels being ordered from the company, which currently stands at 33 container vessels.
In the meantime, HHIC recently began the fabrication of its first container vessel, costing some US$70 million, its Subic Freeport shipyard.

By:BERNIE CAHILES-MAGKILAT
MANILA BULLETIN