HD Hyundai Heavy Industries Press Release
HD Hyundai Heavy Industries is strengthening its approach to target the Southeast Asian naval ship market, which is projected to be worth $10 billion by 2030, by establishing the Philippines as its strategic base.
The opening ceremony to celebrate the grand opening of the engineering office was held on Wednesday, March 6th, marking a significant milestone of HD HHI’s expansion efforts into the Southeast Asian naval ship market. The ceremony was attended by around 30 officials from both sides, including Joo Won-ho, the representative of the Naval & Special Ship Business Unit of HD Hyundai Heavy Industries; Joselito Ramos, the Assistant Secretary for Logistics and Acquisitions at the Department of National Defense; Rear Admiral Caesar Valencia, the Vice Commander of the Philippine Navy; and Vice Admiral Joseph Coyme, Commander of Maritime Safety Services Command at the Philippine Coast Guard.
The move to establish an overseas technical base is driven by the requirement to respond swiftly to the increasing demand for defense assets amidst rapid changes in political situations around the world. The Philippines is considered a market with significant potential due to its strategic location as a gateway connecting the Pacific and Asia, demonstrating a growing need and willingness to enhance its naval capabilities.
HD Hyundai Heavy Industries plans to dispatch a team from its Naval & Special Ship Business Unit, including design engineers, MRO (Maintenance, Repair, Overhaul), and sales personnel, to the Philippine engineering office. This team will offer consulting for technical specifications optimized for local demands, as well as technical support and warranty repairs for delivered ships. The company aims to use this base not only for its operations in the Philippines but also to expand its export market to other Southeast Asian countries. According to the British military intelligence firm Janes, maritime defense spending among Southeast Asian countries is expected to increase from $8 billion in 2023 to $10 billion by 2030.
HD Hyundai Heavy Industries is working on strengthening its defense network with key Southeast Asian countries, including Thailand and Vietnam, in addition to the Philippines. By understanding regional political situations and uncovering potential demands, the company aims to enhance its sales competitiveness and achieve a sales target of 2 trillion won ($1.5 billion) by 2030.
Joo Won-ho, the head of HD Hyundai Heavy Industries’ Naval & Special Ship Business Unit, stated:
“The new engineering office in the Philippines will serve as a key base for targeting the global naval ship market, beginning with Southeast Asia.”
“By leveraging HD Hyundai Heavy Industries’ advanced ship technology, we aim to elevate the status of Korean defense industry and offer a win-win solution to the countries of Southeast Asia.”
Meanwhile, HD Hyundai Heavy Industries has been recognized for its competitiveness by securing orders for a total of 10 vessels as part of the ‘Horizon’ project pursued by the Philippine government for the modernization and enhancement of its navy’s capabilities. These orders include 2 frigates in 2016, 2 corvettes in 2021, and 6 Offshore Patrol Vessels (OPVs) in 2022.
