Bankrupt Hanjin Philippine yard draws Chinese interest

The recent insolvency of the Philippine yard of South Korea’s Hanjin Heavy Industries & Construction (HHIC) has stirred interests of investment from Chinese companies, reports said.

Last week, HHIC-Phil filed for a rehabilitation procedure with a Philippine regional court as it collasped under debts of over $400m owed to banks.

The local media cited Philippine trade undersecretary and board of investments managing head Ceferino Rodolfo as saying that the agency was in touch with two Chinese companies that have earlier expressed interest in opportunities in shipbuilding in the Philippines.

Rodolfo said both companies, which are operating shipyards in China, are considering investing into HHIC-Phil.

Read more: Hanjin Heavy’s Philippine yard files for rehabilitation

Trade secretary Ramon Lopez was reported saying that the trade department is providing support by linking potential investors with HHIC-Phil.

“Our first objective is to replace with another shipbuilder that will take over,” Lopez was quoted saying.

HHIC-Phil had been building containerships, gas carriers, tankers and others from its 300-hectare Subic shipyard before its downfall.

Posted 14 January 2019

© Copyright 2019 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

Lee Hong Liang

Asia Correspondent

London big debate banner