en.Wedoany.com Reported - Seven years after the bankruptcy and closure of the Subic Shipyard, once the world's fifth-largest shipyard, its operator, HD Hyundai Heavy Industries Philippines Shipyard, has secured its first VLCC orders.

Hong Kong-based Korean shipowner Cido Shipping has ordered four 300,000 DWT VLCCs from HD Hyundai Group. The new vessels will be built at the HD Hyundai Heavy Industries Philippines Shipyard in Subic Bay, with delivery scheduled between 2029 and 2030. As the contract was directly negotiated between the shipowner and the shipyard, market disclosures are limited, but rumors suggest a unit price of approximately $130 million, bringing the total transaction value to around $520 million (approximately RMB 3.535 billion). According to Clarksons data, the current newbuilding price for a 315,000-320,000 DWT conventional fuel VLCC is about $130.5 million (approximately RMB 883 million), the highest level since $132 million in March 2009.

This marks Cido's first VLCC order in recent years. The company's last order for similar vessels dates back to 2020, when it placed orders with HD Hyundai Heavy Industries for the 300,000 DWT tankers "Melody Hope" and "Morning Hope." Both vessels were delivered in 2022 and remain in the company's fleet.

This order is also HD Hyundai's first VLCC newbuilding contract this year. According to Clarksons data, global VLCC newbuilding orders have reached a record high of 147 vessels so far this year, nearly all of which were secured by Chinese shipbuilders. South Korean shipbuilders have won only 18 vessels, including 14 by Hanwha Ocean and 4 by HD Hyundai.

The signing marks the first time since 2014 that the HD Hyundai Heavy Industries Philippines Shipyard has taken VLCC orders. In 2014, the shipyard's predecessor, Hanjin Heavy Industries' Subic Shipyard, secured orders for 4 VLCCs, which were delivered between 2017 and 2018. Located in Subic Bay, 110 kilometers northwest of Manila, the Subic Shipyard was built by Hanjin Heavy Industries (now HJ Heavy Industries) in 2006. It features a mega dry dock measuring 550 meters long and 135 meters wide, capable of simultaneously building two 20,000 TEU-class container ships. Before its bankruptcy and closure in February 2019, the shipyard had built a total of 123 large container ships, bulk carriers, and crude oil tankers, before ceasing operations due to a downturn in the global shipbuilding cycle.

In April 2022, U.S. private equity firm Cerberus Capital Management acquired the Subic Shipyard from Hanjin Heavy Industries for $300 million, securing a 50-year lease on 300 hectares of land. This transaction was the largest public-private partnership in the 75-year history of U.S.-Philippines relations. Part of the base is currently used as a Philippine Navy facility. To expand its offshore wind power business, HD Hyundai signed a lease agreement with Cerberus Capital Management in May 2024 for part of the land and facilities at the Subic Shipyard, planning to develop it into a key overseas production base. According to plans, HD Hyundai has committed to investing approximately $550 million over the next 10 years to transform the Subic base into an overseas outpost for "K-Shipbuilding," officially commencing operations in January 2026 and expected to create around 7,000 jobs within 3 to 5 years. The base will be developed into a comprehensive maritime industrial park encompassing the manufacturing of offshore wind power foundation structures, hull block construction, and ship repair. Leveraging the Philippines' geographical advantage as a core region for Asia-Pacific offshore wind power growth from 2030 to 2050, it will also serve as a wind power equipment manufacturing base.

South Korean industry analysts suggest that by utilizing overseas shipyards for the complete construction of standard vessel types, HD Hyundai can enhance its price competitiveness against Chinese shipbuilders. For a long time, South Korean shipyards have primarily focused on high-value-added large vessels. In September last year, the first vessel built by the HD Hyundai Heavy Industries Philippines Shipyard—a 115,000 DWT Aframax tanker—held a steel-cutting ceremony, marking the official restart of full-ship construction at the Subic Shipyard. Philippine President Ferdinand Marcos Jr., diplomatic representatives from the U.S. and South Korea, and HD Hyundai executives attended the ceremony. Kim Sung-joon, CEO of HD Korea Shipbuilding & Offshore Engineering, stated at the time: "The Philippines, with its unique natural environment and excellent human resources, is emerging as a new shipbuilding nation with government support. The company will unlock the potential of the HD Hyundai Heavy Industries Philippines Shipyard to further strengthen its global order competitiveness."

As a core infrastructure capable of simultaneously supporting offshore wind platform construction and shipbuilding, the HD Hyundai Heavy Industries Philippines Shipyard can build up to 10 new vessels annually. Currently, approximately 1,000 employees work there. According to Clarksons data, the shipyard currently holds an orderbook of 18 vessels totaling 2.81 million DWT. Excluding Cido's 4 VLCC orders, the remaining 14 vessels are 115,000 DWT LR2 product tankers, with delivery schedules extending to 2030.