Building a Business Empire with my Technological System

Chapter 272: Deciding Which Best

After revealing his intention to the President, Michael dialed his phone and called Juliet.

"Juliet, I need you at my office now," Michael said, his tone urgent.

Within moments, Juliet entered his office, her expression curious yet professional. "Yes, Mr. Reyes? What do you need?" she asked, taking a seat across from him.

Michael leaned forward, his face serious. "Juliet, I need you to conduct thorough research on two major shipyards here in the Philippines: Hanjin Subic Shipyard and Keppel Batangas Shipyard. I want detailed information on their history, current operations, and any significant events. Everything you can find."

Juliet nodded, taking out her tablet to jot down notes. "Understood, Mr. Reyes. I'll start with Hanjin Subic Shipyard. It's one of the largest shipyards in Southeast Asia, isn't it?"

"Exactly," Michael replied. "But I need more than just general knowledge. I need to know about their financial status, their technological capabilities, any recent changes in management or ownership, and their potential for expansion. Look into any strategic partnerships they've had, and see if there have been any legal or environmental issues. The same goes for Keppel Batangas Shipyard."

"Got it," Juliet said, her fingers flying over the tablet's screen as she made detailed notes. "I'll also check for any news articles, financial reports, and official statements from both companies. Do you need anything else?"

"Yes," Michael said, leaning back in his chair. "Find out about their workforce. I want to know the size of their teams, the skill levels, and if there have been any labor disputes or strikes."

Juliet looked up from her notes, meeting Michael's gaze. "I'll get right on it, Mr. Reyes. I'll compile a comprehensive report and present it to you as soon as possible."

"Thank you, Juliet," Michael said, a hint of a smile on his face.

Juliet stood up. "I'll start immediately. You'll have everything you need soon."

***

Later in the afternoon, Juliet returned to Michael's office, carrying a detailed report. She knocked lightly on the door before entering.

"Mr. Reyes, I've gathered all the information you requested on Hanjin Subic Shipyard. Unfortunately, the news isn't very positive," Juliet began, taking a seat across from Michael.

Michael gestured for her to continue, his interest piqued.

"Hanjin Subic Shipyard was established in 2006 by Hanjin Heavy Industries and Construction Philippines, a subsidiary of the South Korean conglomerate Hanjin Heavy Industries & Construction Co., Ltd. It quickly became one of the largest shipyards in Southeast Asia, renowned for its state-of-the-art facilities and advanced shipbuilding capabilities," Juliet explained.

She handed Michael a detailed document as she continued, "The shipyard specialized in constructing large container ships, bulk carriers, and tankers. At its peak, it employed over 30,000 workers and played a crucial role in boosting the local economy. However, several factors led to its eventual decline and closure."

Michael skimmed through the document, noting key points as Juliet elaborated.

"One of the primary issues was financial mismanagement. Despite its initial success, Hanjin Subic Shipyard struggled with mounting debts. The global shipping industry downturn in the early 2010s exacerbated these financial woes. Orders for new ships dwindled, and Hanjin found itself unable to keep up with debt repayments," Juliet continued.

She pointed to a section of the report detailing the financial troubles. "By 2019, Hanjin Heavy Industries & Construction Philippines declared bankruptcy. The company owed more than $900 million to Philippine banks and an additional $400 million to South Korean lenders. The lack of liquidity and inability to secure new financing deals forced the company to cease operations."

Michael looked up from the report, his brow furrowed. "So, the shipyard has been inactive since then?"

"Yes," Juliet confirmed. "The closure of Hanjin Subic Shipyard had significant repercussions. Thousands of workers lost their jobs, and the local economy suffered a severe blow. The site has remained dormant, with occasional discussions about potential buyers or investors, but nothing concrete has materialized."

Juliet continued, "There were also environmental concerns. During its operational years, there were multiple instances of environmental violations, including improper waste disposal and pollution. These issues have left a negative mark on the shipyard's reputation and added to the complexity of any potential revival."

Michael nodded thoughtfully, absorbing the information. "What about their technological capabilities? Were they advanced enough to support our defense manufacturing goals?"

"Despite the financial and environmental issues, Hanjin Subic Shipyard was known for its advanced shipbuilding technology. They had modern dry docks, extensive fabrication facilities, and a skilled workforce experienced in constructing large, complex vessels. If we can address the financial and environmental challenges, the shipyard has the potential to support our goals," Juliet replied.

"Okay…how much money do we need to bring out in order to acquire and revive Hanjin Subic Shipyard?" Michael asked, his tone serious.

Juliet had anticipated this question. She glanced at her notes before responding, "Based on the current market value and the outstanding debts, we are looking at an initial investment of around $1 billion. This would cover the acquisition costs, settling the debts, and some immediate refurbishment to make the shipyard operational again."

Michael leaned back in his chair, absorbing the information. "And what about the long-term investment needed to ensure the shipyard can meet our defense manufacturing goals?"

Juliet continued, "In addition to the initial $1 billion, we would likely need to invest another $500 million to $700 million over the next few years. This would cover upgrading the facilities, implementing modern shipbuilding technologies, and hiring skilled labor. There's also the cost of addressing the environmental issues left by the previous management, which could add another $100 million."

Michael hummed in thought. "Hmm…the figures are good…and I think our finances can handle it."

"But, if you are going to start a shipbuilding company, sir, do you already have your own design of warships? What is your plan? Are you going to buy a license to manufacture other companies' ships?" Juliet asked, her curiosity evident.

"I already have a design."

Upon hearing that, Juliet just sighed. She already expected those words to come out of his mouth. She giggled, remembering those days.

"Why are you giggling?"

"It's nothing sir," Juliet said, shrugging off her smile

"Now what about the other one?" Michael asked.

Juliet composed herself and opened the next part of her report. "Keppel Batangas Shipyard has a different story. It was established in the early 1990s by Keppel Philippines Marine, Inc., a subsidiary of Keppel Corporation of Singapore. The shipyard has been a significant player in the local shipbuilding and repair industry, known for its high-quality standards and reliable services."

She handed Michael another detailed document as she continued, "Keppel Batangas Shipyard specializes in the construction and repair of offshore support vessels, cargo ships, tankers, and passenger ferries. It has also been involved in the fabrication of offshore structures for the oil and gas industry."

Michael nodded, scanning the document. "What about their financial status?"

Juliet responded, "Financially, Keppel Batangas Shipyard has been relatively stable. Unlike Hanjin, they managed to navigate the global downturn in the shipping industry by diversifying their services and maintaining a strong focus on quality and customer satisfaction.

They have strategic partnerships with major international shipping and offshore companies, which have helped them secure a steady stream of contracts."

"And their workforce?" Michael asked.

"Keppel Batangas Shipyard employs around 5,000 workers, including highly skilled engineers, technicians, and laborers. They have a strong training program in place to ensure that their workforce remains up-to-date with the latest industry standards and technologies," Juliet explained.

"Any significant events or issues I should be aware of?" Michael inquired.

"Yes," Juliet replied. "There have been a few labor disputes over the years, mainly related to wages and working conditions, but these were resolved through negotiations. Additionally, the shipyard has faced some environmental challenges, but they have been proactive in addressing them.

Keppel Batangas Shipyard has invested in modern waste management systems and implemented strict environmental policies to minimize their impact."

Michael leaned back, considering the information. "So, in terms of financial stability and operational capability, Keppel Batangas Shipyard seems to be in a better position than Hanjin."

"Correct," Juliet confirmed. "While Hanjin has the potential for a significant turnaround with the right investment, Keppel Batangas Shipyard is already on solid ground. It might be a safer and more immediate option if you're looking to start operations quickly."

"Alright, Based on what I heard, Hanjin it is," Michael decided.