Two Chinese shipbuilders keen to take over Hanjin Subic

Two Chinese shipbuilders keen to take over Hanjin Subic

Two unidentified Chinese shipbuilding groups have expressed an interest in taking over the bust Philippine yard belonging to Hanjin Heavy Industries & Construction.

HHIC-Phil, Hanjin Heavy’s Subic Bay subsidiary, became one of the biggest victims of the shipbuilding downturn when it filed for rehabilitation last week. With loans of $412m owned to five local banks, HHIC-Phil’s demise could be the biggest corporate default in Philippine history and has sent the government scrambling to find a solution.

Philippine trade undersecretary Ceferino Rodolfo said on Friday that he had been in discussions with two Chinese shipbuilding groups who had expressed an interest in taking over the yard, which at 300 ha, is the largest in Southeast Asia.

Hanjin “has been a valued investor that helped us develop a pool of workers … We are looking at linking them up with other investors who have expressed interest in shipbuilding in the Philippines,” Rodolfo said, adding: “Our first objective is to replace with another shipbuilder that will take over.”

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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