Korean firm Hanjin Heavy Industries and Construction Co. will sign a deal today to build a $2-billion shipbuilding complex here with the Phividec Industrial Authority, the state-run agency tasked to develop industrial sites.
The facility will be the largest in the Philippines—even bigger than Hanjin’s $1-billion shipyard complex in Subic—and will employ 20,000 people to make ship parts.
Hanjin general manager Jeong Sup Shim said his group decided to build the facility after the Philippine government declared the 441.8-hectare project site an economic zone.
That site is part of a 3,000-hectare industrial estate being managed by Phividec, an agency that is also tasked to help boost the economy in the countryside. The estate also hosts Steag State Power Inc.’s 200-megawatt coal-fired power plant and Mindanao Container Terminal, which now has international shipment routes.
“The proclamation of the area as an ecozone will allow Hanjin to avail of incentives of the Philippine Economic Zone Authority, such as duty-free importation of capital equipment and income tax holidays, among others,” Jeong said.
“The development of this site is in accordance with the government’s policy to disperse industries to the countryside as a means of equitably distributing resources and as a vehicle to sustain social and economic development in the country,” Phividec chairman Emmanuel de Ocampo said.
Jeong said Hanjin would spend at least P4.6 billion a year to pay the employees of the shipbuilding complex, which will produce pipes and light bridges with a maximum capacity of 80,000 tons a year starting next year, when the first phase is completed.
The facility’s capacity will increase to a maximum of 830,000 tons in the next 15 years, when it starts producing cargo and container ships.
South Korean shipyards including Samsung Heavy Industries Co. and STX Shipbuilding Co. are also expanding overseas as global economic growth raises the need for vessels, which carry 90 percent of global trade.
The facility will be the largest in the Philippines—even bigger than Hanjin’s $1-billion shipyard complex in Subic—and will employ 20,000 people to make ship parts.
Hanjin general manager Jeong Sup Shim said his group decided to build the facility after the Philippine government declared the 441.8-hectare project site an economic zone.
That site is part of a 3,000-hectare industrial estate being managed by Phividec, an agency that is also tasked to help boost the economy in the countryside. The estate also hosts Steag State Power Inc.’s 200-megawatt coal-fired power plant and Mindanao Container Terminal, which now has international shipment routes.
“The proclamation of the area as an ecozone will allow Hanjin to avail of incentives of the Philippine Economic Zone Authority, such as duty-free importation of capital equipment and income tax holidays, among others,” Jeong said.
“The development of this site is in accordance with the government’s policy to disperse industries to the countryside as a means of equitably distributing resources and as a vehicle to sustain social and economic development in the country,” Phividec chairman Emmanuel de Ocampo said.
Jeong said Hanjin would spend at least P4.6 billion a year to pay the employees of the shipbuilding complex, which will produce pipes and light bridges with a maximum capacity of 80,000 tons a year starting next year, when the first phase is completed.
The facility’s capacity will increase to a maximum of 830,000 tons in the next 15 years, when it starts producing cargo and container ships.
South Korean shipyards including Samsung Heavy Industries Co. and STX Shipbuilding Co. are also expanding overseas as global economic growth raises the need for vessels, which carry 90 percent of global trade.