Story and Photos by Henry Empeño | August 9, 2025

SUBIC BAY FREEPORT — Six long years after the bankrupt South Korean shipbuilder Hanjin left the shores of Subic, a new tenant is painting positive prospects for the long-idle 310-hectare shipyard at the Redondo Peninsula here.

Agila Subic Compass, which took over as new facility operator after US-based Cerberus Capital Management acquired the site in 2022, has rebranded the defunct shipyard for multiple use, taking in partners from diverse fields like shipbuilding, logistics, warehousing, and telecommunications.

Agila Subic general manager Mark Millan said in an onsite media briefing Thursday that three years into operation, Agila has already signed in four major tenants to kickstart the transformation of the distressed facility into a new economic growth center.

These include Hyundai Heavy Industries Philippines, one of the biggest shipbuilders in the world, and the Philippine Navy, which has established its main naval operating base (NOB) within the facility.

“When we started operations in 2022, we made it our commitment to transform the facility into an economically viable site that would bring in world class locators and create thousands of jobs–both direct and indirect–to Subic Bay and nearby communities, thereby contributing to the Philippines’ economic growth,” said Millan.

“We are pleased to see that we are on track in achieving that vision after only three years of operations through partnerships with our locators and with support from the Philippine government,” added Millan, a native of San Antonio, Zambales and a former Philippine Navy officer.

While seeking out locators from businesses other than shipbuilding, Agila Subic has retained the industrial ethos of the $1.7-billion Hanjin facility that once boasted of more than 30,000 workers.

Millan said Agila Subic expects to generate investments of up to $1 billion, some 4,000 new jobs by the end of this year, and about 10,000 workers by 2027.

As of now, Hyundai has taken over the facilities vacated by Hanjin Heavy Industries in 2019, and is using the same for shipbuilding, ship repair, and construction of offshore wind platforms, he said.

On the other hand, the Philippine Navy is leasing 90 hectares at the northern section of the shipyard for training, billeting, and repair maintenance services. The Navy also docks its latest naval assets, including the guided-missile frigate BRP Miguel Malvar (FFG06) that was commissioned last May, at its NOB here. 

Two other tenants, Subcom and V2X, have taken over some of the cavernous warehouses in the area for storage and warehousing operations, said Millan.

Subcom is a leading global manufacturer and installer of subsea fiber optics cables and communications systems, while V2X is a logistics firm listed in the New York Stock Exchange.

Easily the shipyard locator with the biggest potential in terms of investment and employment is South Korea’s HD Hyundai Heavy Industries, which now employs 1,300 workers at the Agila facility and expects its workforce to reach 2,000 by the yearend.

Ralph David Magno, Hyundai’s human resource manager in Subic, said the firm is now recruiting welders, fitters, painters, production engineers, and heavy equipment operators who have the skills and experience in shipbuilding. It now has 140 welder-trainees, the 10^th batch so far to undergo training.

 Hyundai, Magno added, offers very competitive compensation packages and perks, including free board and lodging and shuttle services, as well as health insurance upon reaching one year of service. 