Korean firm starts building RP-made ship

SUBIC BAY FREEPORT – Hanjin Heavy Industries Corp.-Philippines Inc. (HHIC-PI), one of the world’s largest shipyards, switched on the steel plate cutting machine that signaled the start of its production here.

The First Steel Cutting Ceremony was held at the newly built HHIC-PI shipyard at the Redondo Peninsula.

"It is our pleasure to host the first steel cutting ceremony for the construction of a new 4,300 TEU container ship here in Subic Bay. It is really a historic moment for our Subic shipyard," said HHIC-Phils. president and HHIC regional director Jeong Sup Shim.

The HHIC-PI constructed the shipyard complex inside a 480-hectare area in the peninsula with a committed investment of $1 billion. The venture is expected to create job opportunities for approximately 30,000 direct and indirect employees.

The ceremony was graced by Subic Bay Metropolitan Authority (SBMA) chairman Feliciano Salonga, SBMA administrator and chief executive officer Armand Arreza, Department of Trade and Industry (DTI) Secretary Peter Favila, Subic-Clark Alliance and Development (SCAD) Secretary Edgardo Pamintuan, and HHIP chairman Nam Ho Cho.

"In less than 14 months after the signing of at memorandum of agreement for the construction of the shipyard, we will be witnessing the ceremonial switch-on of the first steel-cutting machine, which formally begins the steel cutting process for the very first vessel they will produce here," said Arreza.

Already lined-up for production are six units of 4,300 TEU container ships to be delivered to Diorxy Maritime Corp. in Greece in 2009. The second production line will build six 4,300 TEU ships intended for NSC Schiffartsgeselhaft of Germany.

Representatives of top shipping firms such as Diorxy Maritime Corp., NSC Schiffartsgeselhaft, Kaptanoglu Shipping, Maersk., also witnessed the ceremony.

"This is to reiterate our commitment to Hanjin in making sure that endeavors here in Subic Bay Freeport become successful and that all projects and ships constructed here are completed in a timely manner," Arreza said.

He also noted that the activity marks a milestone which strengthens investors’ confidence in the Freeport and in the entire country.

Some 4,000 persons have already been employed by the company during the pre-operation and construction phase. The start of shipbuilding operations will likewise create indirect employment to an estimated 20,000 to 30,000 people.