Logo of Phnom Penh Post newspaper Phnom Penh Post - Hanjin, EEI team up for projects in Philippines

Hanjin, EEI team up for projects in Philippines

Content image - Phnom Penh Post
South Korean shipbuilder Hanjin Heavy Industries & Construction Co Ltd’s (HHIC’s) facility in the Philippine’s Subic Bay. PHILIPPINE DAILY INQUIRER

Hanjin, EEI team up for projects in Philippines

Ahead of the entry of a white knight into its shipbuilding hub in Subic, South Korean shipbuilder Hanjin Heavy Industries & Construction Co Ltd (HHIC) hatched a strategic alliance with Yuchengco group-led construction firm EEI Corp for upcoming construction projects in the Philippines.

This strategic alliance is seen to make use of HHIC’s special intellectual property in underground infrastructure, railway and airport construction projects. HHIC is thus expected to continue doing business in the Philippines even when the Subic shipyard will be sold in the future.

“EEI’s strategic alliance with Hanjin refers to infrastructure construction projects. It has nothing to do with shipbuilding or shipyard [operation],” a source privy to HHIC’s rehabilitation said.

EEI and HHIC have previously worked together on projects such as the Berth 6 Manila International Container project, EEI disclosed to the Philippine Stock Exchange on Friday.

The local construction firm has successfully participated in numerous infrastructure, electromechanical and building projects, with substantial operations in the Philippines and abroad.

HHIC has completed more than 100 construction projects in the Philippines since 1973.

Following the filing of bankruptcy in Korea, five Philippine banks have acquired a combined 20 per cent equity in HHIC to recover part of their $412 million credit exposure to the cash-strapped Korean firm alongside an upcoming sale of the latter’s vast shipyard in Subic.

Yuchengco-led RCBC has a $145-million credit exposure to Hanjin, the largest among local banks. Other local creditor-banks and their estimated exposure are Metropolitan Bank & Trust Co ($72 million), Bank of the Philippine Islands ($52 million), BDO Unibank ($60 million) and Land Bank of the Philippines ($80 million).

Of the $412 million exposure of local banks in Hanjin, $263 million was tied to the 305ha shipyard in Subic. The creditors are now in evaluating offers for this facility and a deal is expected to be firmed up by September.

The other method of recovery is through the conversion of debt to shares in HHIC Korea. While 20 per cent has been acquired by Philippine banks, HHIC’s Korean creditors, including Korea Development Bank, have taken over a 63 per cent stake in the company. The creditors can opt to sell individually using the open market. PHILIPPINE DAILY INQUIRER


  • Wing Bank opens new branch in front of Orkide The Royal along Street 2004

    Wing Bank celebrates first anniversary as commercial bank with launch of brand-new branch. One year since officially launching with a commercial banking licence, Wing Bank on March 14 launched a new branch in front of Orkide The Royal along Street 2004. The launch was presided over by

  • Girl from Stung Meanchey dump now college grad living in Australia

    After finishing her foundational studies at Trinity College and earning a Bachelor’s degree from the University of Melbourne in 2022, Ron Sophy, a girl who once lived at the Stung Meanchey garbage dump and scavenged for things to sell, is now working at a private

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Wat Phnom hornbills attract tourists, locals

    Thanks to the arrival of a friendly flock of great hornbills, Hour Rithy, a former aviculturist – or raiser of birds – in Kratie province turned Phnom Penh tuk tuk driver, has seen a partial return to his former profession. He has become something of a guide

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to

  • Angkor Beer strengthens national pride with golden new look and fresher taste

    Angkor Beer – the "Gold of Angkor" – has a new look, one that is more stylish and carries a premium appeal, as well as a fresher taste and smoother flavour, making it the perfect choice for any gathering. Angkor Beer recently launched its new design, one