Hanjin sets up shop in Subic Bay

Hanjin Heavy Industries has signed a land lease agreement with the Subic Bay Metropolitan Authority to construct and operate a $1 billion shipyard at the Subic Bay Freeport Zone in Zambales.

The lease agreement covers 230-hectare of land and Hanjin will invest $1 billion over the next 10 years for a steel structure fabrication yard. The shipyard is expected to be completed by 2016. Once operational, the shipyard will build LNG carriers and very large container carriers and the investment is also expected to boost economic activity at the freeport zone and generate 30,000 to 40,000 jobs.

Hanjin said its investment in Subic was part of its global strategy for competitiveness in shipbuilding industry by expanding its operations overseas.