CAGAYAN DE ORO CITY - Construction of the US$ 2-billion shipyard complex in Misamis Oriental may be delayed as acquisition of the 500-hectare lot in Villanueva may face delay as heirs of the Jacinto Group of Companies are not on terms.

"It (shipyard construction) may be realized but there

Hanjin Heavy Industries and Construction Corporation, a Korean-based construction company, is building a shipyard complex in Villanueva, Misamis Oriental next year.

Malacanang officials said the Mindanao shipyard plant is two times larger than the shipbuilding complex which Hanjin is also constructing in Subic.

Uy said the 500-hectare proposed Hanjin Mindanao plant was acquired by the Jacinto Group of Companies, which originally planned to put up an integrated steel mill complex in the area in 1995.

He said the Jacintos paid the Phivedec some P100 million for the site, which covers two barangays in Villanueva with about 200 farmer-residents.

Actually, Phivedec is now ready to pay the balance of P100 million to acquire the prime lot back, Uy said.

"The problem now is the heirs of the Jacintos who could not go on terms," Uy added.

In order for Hanjin to pursue its scheduled timetable, they must insist Phivedec to settle the predicament as soon as possible, he said.

Hanjin officials announced this month that the shipyard complex will start construction early next month.

In a meeting with President Gloria Macapagal Arroyo last month, Hanjin president Jeong Sup Shim, said the Villanueva plant will start fabricating ships in 2110 and by 2012, the company expects to start exporting some US$ 1.7 billion worth of shipbuilding parts and vessels.

The Hanjin Mindanao plant is expected to employ some 30,000 Filipinos, particularly engineers, welders and steel fabricators.

Hanjin also won the bidding to construct the P7 billion International Airport in Laguindingan, Misamis Oriental last November.

The Korean construction company started construction works in Mindanao sometime in 1973 when it constructed the highways from Iligan City to Butuan City. (PNA)