By Lane Afable, News Editor
The Philippines is eyed by 16-member countries of the Partnership for Indo-Pacific Industrial Resilience (PIPIR) to become the new hub for arms production in South East Asia (SEA)
The PIPIR, a US-led pact, considers the Philippines as a strategic site in regional defense production in relation to 2026 U.S.–Philippines defense agreement which signals deeper military and industrial cooperation between the two countries.
The United States currently seeks to increase the Philippines’ stake in the ongoing geopolitical conflict by proposing the establishment of a new ammunition production facility in the country as part of a broader strategy to strengthen military manufacturing across SEA and the Indo-Pacific region.
In July 2025, President Marcos confirmed that the planned US-backed ammunition manufacturing hub in Subic Bay was a long-standing initiative under the Self-Reliant Defense Posture (SRDP) program, aimed at bolstering the Philippines’ national defense.
Marcos said the project had been in the works for months and would proceed even without US assistance.
“Even without US help, we would still pursue it,” Marcos said, noting that the US had offered support to complement the Philippines’ effort.
He acknowledged concerns that the facility could provoke China, which has been assertive in the West Philippine Sea, but he emphasized that the priority is safeguarding the country.
Defense Secretary Gilberto Teodoro Jr. earlier said the facility will operate under a commercial foreign direct investment model, initially employing 200 to 300 skilled workers, with potential expansion linked to downstream industries and port development.
Teodoro said the hub would help address global ammunition shortages and generate revenue for Subic.
The business case is still under review, with further details to be announced once they are finalized.
The ammunition facility in the Philippines would focus on 30mm-by-173mm rounds, widely used in aircraft cannons and armored vehicles.
While still in the exploratory phase, the project underscores Manila’s emerging role in regional defense manufacturing and aligns with US efforts to bolster allies’ military self-sufficiency.
Other Philippine defense officials say the move is necessary to modernize the Armed Forces of the Philippines (AFP) amid evolving security challenges, especially now with continuing and escalating China’s belligerent and provocative actions in the West Philippine Sea.
It is also cited that with the project the country will make itself defense self-reliant; improve government’s Self-Reliant Defense Posture (SRDP); reduces dependence on imported weapons and supplies; generate jobs and local industry growth; potential boost to manufacturing, logistics, and tech sectors in Zambales; technology transfer where opportunities for Filipino engineers and companies to gain advanced defense manufacturing knowledge; stronger security and faster access to munitions, and, improves AFP readiness and maritime defense capabilities.
In a joint statement, the 16 PIPIR members that include Australia, Canada, Germany, Italy, Japan, Lithuania, the Netherlands, New Zealand, Norway, South Korea, Singapore, Sweden, Thailand, the United Kingdom and the Philippines, have reaffirmed their commitment to accelerate defense industrial cooperation at these critical and challenging times brought by nasty war postures and actions of Communist China in the region.
