South Korea’s Hyundai interested in Hanjin’s shipyard–DND chief

South Korea’s Hyundai interested in Hanjin’s shipyard–DND chief

Hanjin Shipyard, located on the Redondo Peninsula, Subic Bay Freeport Zone, is seen from across the bay on Tuesday. The free port’s biggest investor and employer is seeking rehabilitation, under the weight of hundred of millions of dollars in loans to some of the country’s leading banks.

International shipbuilding companies are continuing to express interest in taking over Hanjin and its facility in Subic, but the government is exercising the first option of acquiring the facility if there is really a need, Defense Secretary Delfin Lorenzana said on Monday.

Among the latest companies that have eyed Hanjin, said the defense chief, was Hyundai Heavy Industries, the South Korean manufacturer of the two brand-new frigates that are being built for the Philippine Navy.

“Lately, I also heard that Hyundai of Korea is also interested,” he said, adding that the firm adds up to the list of international companies from the US, Japan, South Korea, Indonesia and Australia that are keen on taking over Hanjin, given the right terms. Lorenzana said that even Turkish firms and European shipyards are interested in the Subic-based shipyard, which, according to him, is still operating.

“The Hanjin shipyard is not actually, has not filed for bankruptcy; it is just asking for rehabilitation because the problem is cash flow. It is still building some ships here, but it needs money to keep operating on a day-to-day basis,” he said.

Lorenzana said that if Hanjin would really need to stop its operations, then it would be acquired by the government, given that  money has been set aside to bail it out from its bank creditors.

“If…we have to take over, the Senate has already allocated money to take over the facility and then the Navy, plus some local shipbuilders, also can come in and run the facility. That’s the plan,” he said.

“The government is ready to take over, if and when there is a need to do so,” he added.

Image Credits: Nonie Reyes

Source: https://businessmirror.com.ph/2019/02/05/south-koreas-hyundai-interested-in-hanjins-shipyard-dnd-chief/

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