PH to Washington: Consider Subic as Warship Manufacturing Hub

18 Agustus 2025

U.S. Navy ship docked in South Korea for maintenance and inspection (photo: Hanwha Ocean)

MANILA – The Philippines is urging the United States to consider the country as its potential manufacturer of US warships, as Washington, DC seeks to fortify its fleet over the next 30 years.

“Subic, obviously the (former) Hanjin Subic Shipyard, is (in) shipbuilding operation and we’re sure it could possibly be part of what the United States is looking at,” Philippine Ambassador to the US Jose Manuel Romualdez said Thursday in an interview on the sidelines of the US - Association of Southeast Asian Nations (ASEAN) Business Council meeting.

According to Romualdez, the US aims to revive its long-stalled shipbuilding industry, while the Philippines’ shipbuilding operations are already active.

“(The US) wants to increase their shipbuilding industry. It’s been sort of like on hold for many years, decades, and now they are reviving it. Ours is already operating right now,” he said.

The envoy said proposals to build US Navy ships in the Subic shipyard, now called the Agila Subic multi-use facility, have been brought up in previous meetings with the Pentagon.

In 2022, US-based Cerberus Capital Management acquired the previously distressed property, with most of its area leased out to tenants and projected to employ a workforce of 4,000 by 2025.

The facility currently houses four major tenants, including HD Hyundai Heavy Industries Philippines, which plans to be fully operational next year.

In the meeting, Romualdez encouraged US stakeholders to expand defense industrial partnerships with the Philippines while they invest in other key sectors.

“Economic strength is the foundation of strategic strength. When US companies invest here, it’s not just about returns on capital. It’s about returns on alliance,” he said, adding that a stronger Philippine economy means a more capable and dependable US defense partner.

On top of shipbuilding, the US and the Philippines are also in discussions on “defense manufacturing plants” in the country, including those for ammunition and drone production.

As the US develops its national defense strategy, US Ambassador to the Philippines MaryKay Carlson said Washington, DC anticipates a “continued positive upward trajectory” on defense and security ties in the next years.

The US-ASEAN Business Council gathered 35 US companies in the Philippines from Aug. 11 to 14, its largest business mission to the country.

It also brought the Aerospace, Defense, and Security (ADS) Mission to the Philippines, with 26 leading US companies across the defense and security sectors participating.

“With close to 60 companies joining this historic back-to-back business missions, the US private sector demonstrates its steady, deep, and enduring commitment to the Philippines as a key partner in the region,” said US-ASEAN Business Council Senior Vice President and Regional Managing Director Ted Osius.

“The US-Philippines relationship is a unique one, and our delegation reflects our collective commitment to supporting the Philippines’ long-term economic growth, innovation, and regional competitiveness.”

(PNA)