Washington: President Ferdinand R. Marcos Jr. announced that the planned US-backed ammunition manufacturing hub in Subic Bay is a longstanding initiative under the Self-Reliant Defense Posture (SRDP) program, designed to enhance the country's national defense.
According to Philippines News Agency, during a press briefing in Washington with Philippine media delegation reporters, Marcos highlighted that the project has been in the pipeline for several months. In his visit to Washington, he met with US President Donald Trump and other US defense and intelligence officials.
Marcos clarified that the decision for the project was made almost a year ago, emphasizing that the Philippines would pursue it even without external assistance. However, the US has offered support to complement the Philippine efforts. The President addressed concerns that the facility might provoke backlash from China, which has been assertively claiming territories in the West Philippine Sea (WPS) within the Philippines' exclusive economic zone.
Marcos questioned whether the Philippines is already a target for China, stating the primary focus should be on protecting the nation. China's recent activities in the WPS include building military outposts on disputed reefs and using coast guard vessels to obstruct Philippine resupply missions.
The Marcos administration has been strengthening security ties with Washington under the 2014 Enhanced Defense Cooperation Agreement (EDCA), allowing expanded access for US forces to nine strategic sites in the Philippines, including locations in Luzon near Taiwan and the South China Sea.
Defense Secretary Gilberto Teodoro Jr., who accompanied the President at the briefing, mentioned that the project will follow a commercial foreign direct investment (FDI) model, despite being funded through US Congress allocations. The facility will initially employ 200 to 300 highly skilled workers, with potential for expansion through downstream industries and port development. Teodoro noted that the facility is expected to generate revenue commercially for Subic and increase trade flows, citing it as an example of US government-sponsored foreign direct investment aimed at boosting Philippine self-reliance.
The ammunition hub is anticipated to meet global demand for various calibers, which Teodoro indicated is currently at a worldwide shortage. The business case for the project is still under review, with further details to be announced upon finalization.