The Philippines is repositioning its historic Subic Bay shipyard as a cornerstone of both its own defence industry and Washington’s naval expansion plans, analysts say, at a time of sharpening US-China tensions and with Manila seeking to revitalise its economy.
Speaking to business leaders in Washington on Thursday, Philippine Ambassador to the US Jose Manuel Romualdez pitched the Agila Subic Shipyard – once a bustling hub for a subsidiary of South Korea’s Hanjin Heavy Industries, now under new management – as well placed to support America’s plan to ramp up warship production over the next three decades.
“The US wants to increase their shipbuilding industry. It’s been sort of on hold for many years, decades, and now they are reviving it,” Romualdez said on the sidelines of a meeting of the US-Asean Business Council, which advocates for the trade interests of the Association of Southeast Asian Nations in the US.
Subic, he said, “could possibly be part of what the United States is looking at” – drawing a contrast between the Philippines’ active shipbuilding sector and America’s efforts to revive its long-stalled industry.
Proposals for the Agila Subic Shipyard – which US private equity firm Cerberus Capital Management acquired in 2022, investing some S$40 million to jumpstart operations – have long been floated within the Pentagon as part of Washington’s search for overseas capacity.
