Hyundai Heavy Industries (HHI) has strategically chosen the Philippines as its gateway to expanding its footprint in the Southeast Asian naval ship market, projected to reach a value of $10 billion by 2030, according to the shipbuilding unit of HD Hyundai. The company has recently inaugurated a naval ship engineering office in Bonifacio Global City, situated 11 kilometers southeast of Manila, the capital of the Philippines.
Joo Won-ho, the Head of Naval and Special Ship Business Unit at HD HHI, led the opening ceremony, attended by approximately 30 individuals, including key figures such as Joselito Ramos from the Philippine National Defense, Caesar Valencia from the Philippine Navy, and Joseph Coyme, the commanding officer of the Philippine Coast Guard.
The establishment of the office is a proactive response to the escalating demand for weapons in Southeast Asia amid the rapidly changing geopolitical landscape. Notably, the Philippines, due to its strategic location, presents significant growth potential in the warship market, necessitating a more formidable navy.
HD HHI's strategic plan involves deploying engineers and sales personnel to the new office to provide optimized technical support and consulting tailored to meet the region's demands. Additionally, the company aims to boost its naval ship exports to other Southeast Asian countries.
Janes, a British intelligence company specializing in military and national security, anticipates Southeast Asian countries collectively spending $10 billion on maritime defense by 2030, reflecting an increase from $8 billion in 2023, as stated by HD HHI.
The company envisions generating an annual revenue of 2 trillion won ($1.5 billion) from its naval ship business by strengthening relationships with defense industry officials in the Philippines, Thailand, and Vietnam.
The Philippine naval ship engineering office is positioned as a strategic base for HD HHI's global expansion plans beyond Southeast Asia. Joo emphasized the company's commitment to leveraging advanced naval ship technologies to enhance the reputation of the Korean defense industry and foster mutual growth with Southeast Asian countries.
HD HHI has already received recognition from the Philippine government, having been commissioned 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.