Hanjin Heavy Industries and Construction–Philippines Inc. (HHIC-Philippines) said Subic shipyard found its market niche in cost competitiveness in the middle of an economic downturn.

"The true value of Subic Shipyard and its unrivaled cost competitiveness stands out in the depression of the shipbuilding market," said one official at HHIC-Philippines.

HHIC-Phils said Subic Shipyard received new building contracts because its market competitiveness was beginning to be recognized following the completion and full operation of Dock 6.

With its many geographical advantages such as competitive workforce and high-tech facilities enabling a 24-hour operation, Subic Shipyard has proven its ability to gain orders even after the new building price has dropped dramatically.

HHIC’s plan is to become the world’s shipbuilding leader by promoting Subic Shipyard as its main production facility that can compete against Chinese shipyards.

The company will be gradually expanding its shipbuilding capacity to include high value added vessels and ultra large vessels while pursuing qualitative growth.

HHIC-Philippines said it won the contracts to build two vessels ordered by Hsin Chien Marine of Taiwan, in the midst of a severe economic downturn in the shipping and shipbuilding industry. The 180,000 ton bulk carriers will be delivered starting September 2011. The contracts for the two 180,000 bulk carriers were signed on January 10, 2010.

Subic Shipyard has two docks, each measuring 370 meters and 550 meters in length. Each dock is equipped with 2 super-sized goliath cranes.

It also has 3.3 km of quay and its assembly yards are over 1,000 meters long. It has an order backlog of over two and a half years.

Subic Shipyard covers an area of 2.5 million, which is more than 10 times the size of Yeongdo Shipyard in Korea. Yeongdo shipyard in Korea.

It will be modernized into a production facility specialized for building high value added vessels.

Subic Bay Metropolitan Authority (SBMA) chairman Feliciano Salonga said Hanjin sold eight container ships worth $470 million to clients since the latter part of 2008.

A total of 36 vessels will be built until 2012 amounting to $3.4 billion.

Salonga said HHIC has helped infuse money to the national coffers, contributing significantly in terms of taxes and jobs to thousand Filipino workers. HHIC Philippines has a total working force of 16,700 workers mostly Filipinos.

Its investments has reached $1.8 billion as of Jan. 6, 2010 but it is projecting to invest more by 2012.