South Korea’s HD Hyundai Heavy Industries Co., the world’s largest shipbuilder, has established a special vessel technology base in the Philippines with hopes to tap into the Southeast Asian naval market.

HD Hyundai Heavy Industries announced Thursday that it officially opened a special ship engineering office in Bonifacio, Manila, the Philippines.

The opening ceremony was attended by about 30 people, including Joo Won-ho, head of HD Hyundai Heavy Industries‘ special ship business division, and Joselito Ramos, undersecretary of the Philippine National Defense for Acquisition and Resource Management.

The office opening is seen as a move to respond to the region’s defense needs.

According to U.K. military intelligence firm Janes, maritime defense spending in Southeast Asian countries is expected to increase to $10 billion in 2030 from $8 billion in 2023.

In particular, the Philippines, located as a gateway connecting the Pacific and Asia, is considered a high-potential naval market with significant demand for naval capabilities.

HD Hyundai Heavy Industries had previously secured contracts for a total of 10 ships, including two escort ships in 2016, two patrol frigates in 2021, and six offshore patrol vessels (OPVs) in 2022, under the Horizon project initiated by the Philippine government to modernize and enhance its naval forces.

HD Hyundai Heavy Industries plans to dispatch design engineers, maintenance, and sales staff from its special ship business division to the new engineering office in the Philippines.

The company aims to provide technical specifications optimized for local needs, technical support for delivered ships, and consulting services for warranty repairs to meet local demand.

It also has plans to tap into the defense markets in other areas such as Thailand and Vietnam.

By Choi Hyun-jae and Yoon Yeon-hae

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