Hanjin Heavy Industries and Construction said on Tuesday that its affiliate in the Philippines has filed for court receivership. 

The affiliate, HHIC-Phil, has run a shipyard in Subic Bay since 2004 as part of the South Korean shipbuilder’s efforts to raise its international competitiveness. 

Since then, the company’s main shipyard in Busan has produced special vessels, including military ones, while the Suvic shipyard has built commercial vessels. 

The move comes amid a prolonged slump in the global shipbuilding industry and is expected to have a negative impact on its South Korean contractors, which supplied components to the Philippine shipyard. 

It could also affect Hanjin Heavy’s ongoing restructuring efforts, which began in 2016.