A South Korean company and a US firm have tied up in building a business in the Philippines engaged in producing wind turbine substructures and providing ship repair services.

The Philippine government on Monday, May 20, welcomed the partnership between South Korean company HD Korea Shipbuilding & Offshore Engineering (HD KSOE) and US firm Cerberus Capital Management as they leased a portion of the Subic shipyard in the Philippines and its facilities.

According to the Department of Foreign Affairs (DFA), the government is expecting that the partnership would provide a much-needed boost to the local economy in Subic.

The new company aims to develop the area into a maritime complex capable of manufacturing the substructures as well as ship blocks while also providing maintenance, repair, and overhaul services through close cooperation with the Philippine government, DFA said.

Kim Sung-joon​,​ chief executive of HD KSOE, s​aid ​they eventually aim to create a “state-of-the-art maritime complex” for various services​. Meanwhile, Cerberus Senior Managing Director Alexander Benard noted that th​ew new venture would “create substantial employment and bring back economic vitality to the Subic Bay area.”

DFA said that President Marcos welcomed HD Hyundai’s investment. He said, “it will not only open new doors for our offshore wind industry, but will also bring maritime manufacturing back to Subic, and eventually restore the glory days of shipbuilding to the Philippine shores.”

Marcos added that the investment will not only generate thousands of jobs, but also enable the transfer of critical skills, and improve the Philippines’ position in the global market, DFA added.

HD KSOE,​ a South Korea-based shipbuilder and solution provider in heavy industry and energy sectors, will initially focus on the construction of offshore wind platforms. It is projecting to invest approximately 550 million ​US dollars over 10 years and generate around 10,000 jobs within​ three to five years​, DFA said.