PH eyes Subic shipyard for potential US warship production

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Metro Manila, Philippines - The Philippine government is open to making Subic Bay a hub for building U.S. Navy vessels, reviving the former American naval base’s role in strengthening Washington’s presence in the Indo-Pacific, Philippine Ambassador to the US Jose Manuel Romualdez said Friday.

The proposal centers on the former Hanjin Subic Shipyard — now the Agila Subic multi-use facility — which was acquired in 2022 by U.S.-based Cerberus Capital Management and is currently operating for commercial purposes.

“It’s an offer that’s been there for quite some time,” Romualdez said. “The Hanjin Shipyard, which has been taken over by an American finance company, is now in operation and it’s being used for commercial purposes. But we definitely are open to the idea of being part of the entire shipbuilding operation of the United States.”

He said the idea has been conveyed to the Pentagon and to shipbuilders from the United States and other countries.

“I think it’s only natural for us to try to bring in as much as we can because that is basically a commercial business activity that we most welcome,” he said.

Asked about the plan’s significance in maintaining Washington’s strategic interest in the region, Romualdez pointed to the trust between allies.

“Like any ally, I think they would — we’re one of those that they can trust to be able to build it,” he said. “And like I said, this is actually technically owned by an American finance company that has taken over the facility. So it’s only natural for them to be able to use that. But it’ll be good for us because obviously it’ll create jobs.”

While no formal new offer has been made, Romualdez said the proposal has been discussed previously, including between Defense Secretary Gilbert Teodoro and US Defense Secretary Pete Hegseth.

Subic Bay served as the largest US naval installation in the Pacific until the Philippine Senate voted in 1991 to end the U.S. military presence. The base was converted into the Subic Bay Freeport Zone, attracting industrial, commercial, and tourism investments.

At its peak as a US facility, Subic housed tens of thousands of military personnel and supported a vast ship repair and logistics operation, making it a linchpin in American maritime strategy in Asia.