Jobs back as former Hanjin shipyard reopens as Agila Subic
SUBIC BAY FREEPORT—Jomar Manuel, 39, worked for 11 years at former shipbuilding giant Hanjin Heavy Industries and Construction-Philippines in Redondo Peninsula here.
Hanjin, a South Korean firm that began operations in 2006, made the country the fifth-largest shipbuilder in the world, having built and delivered at least 94 ships, 27 of which were bulk carriers.
At its peak, it employed a massive workforce of 30,000, predominantly from nearby Olongapo City and the provinces of Zambales and Bataan.
However, Hanjin’s and its workers’ fortunes turned for the worse in 2016, as a global shipbuilding downturn led to a significant drop in orders.
The situation continued to deteriorate, culminating in the company’s bankruptcy in 2019, which resulted in widespread layoffs, affecting many locals, including Manuel, a resident of nearby Castillejos, Zambales. It was the biggest corporate default in local history.
Hanjin owed $400 million to five Philippine banks and $900 million to South Korean lenders, forcing it to file for voluntary rehabilitation in the Olongapo City Regional Trial Court.
Manuel, a father of five, received a separation package worth P172,000. Since his retrenchment, he has been forced to work away from his family, staying in other provinces in search of opportunities.
White knight
The fate of the Hanjin shipyard—and its thousands of former workers—remained uncertain, with at least eight foreign investors, including a state-owned Chinese firm, reportedly eyeing the property.
This sparked fears over potential security and strategic implications, given the shipyard’s location just about 260 kilometers from the Chinese-occupied Panatag (Scarborough) Shoal in the West Philippine Sea.
In 2022, however, New York-based private equity giant Cerberus Capital Management stepped in and acquired the distressed 310-hectare property, now known as the Agila Subic shipyard, breathing new life into the site.
Cerberus invested $40 million to revitalize operations. Last month, following President Marcos’ official visit to the United States, the government announced plans to invest an additional $250 million in shipyard upgrades and key infrastructure projects.
During an Inquirer tour of the shipyard last week, Agila Subic was bustling with activity, with most of its area leased to tenants.
The multiuse facility is now home to four major tenants, including HD Hyundai Heavy Industries, one of the largest shipbuilders in the world, which is using 100 ha for shipbuilding, repair, and offshore wind platform construction.
Manuel was among the first employees hired by Hyundai in September last year and was sent to Vietnam for training as an instructor, as the company prepares for full operations by January next year.
“So when we found out that the shipyard was going to reopen, we were happy, because we knew the work would be stable, there would be commissions, and we would still be close to family,” Manuel said.
Other tenants
Ralph David Magno, Hyundai’s human resources manager, said the company—now training its ninth batch of welders, with 140 trainees—is seeking additional skilled workers.
Aside from Hyundai, the Philippine Navy has leased 90 ha at the northern portion of the shipyard, where it established its main naval operating base for billeting, training, and repair and maintenance services.
According to Subic Bay Metropolitan Authority chair and administrator Eduardo Aliño, Cerberus has been a significant revenue generator for port operations, particularly after the implementation of the Enhanced Defense Cooperation Agreement.
Other tenants include Subcom, a global leader in subsea fiber optic cables and communication systems, which will operate its main Asian storage and cabling depot; and V2X, an NYSE-listed logistics company, for warehousing and storage operations.
Agila Subic general manager Mark Glenn Millan said the facility was poised for significant growth, with plans to employ 4,000 workers by year-end and about 10,000 by 2027. Total investments are projected to reach nearly $1 billion.
