US, PH discuss establishing ammo plant in Subic Bay to boost defense

US President Donald Trump expressed optimism during his first face-to-face meeting with Philippine President Ferdinand Marcos Jr. at the White House on Tuesday, July 22, about establishing an ammunition manufacturing facility in Subic Bay.

Trump highlighted that the project would significantly boost defense capabilities for both nations and aligns with the Philippines' Self-Reliant Defense Posture (SRDP) amid South China Sea tensions.

The US House Committee on Appropriations has directed various agencies to assess the feasibility of establishing a joint ammunition manufacturing facility in Subic Bay as part of broader US-Philippines defense cooperation under the Enhanced Defense Cooperation Agreement (EDCA).

Discussions between Philippine officials, including Ambassador Jose Manuel Romualdez and Defense Secretary Gilberto Teodoro, and their US counterparts are ongoing but no formal proposal has been received yet.

The proposed facility would be located in Subic Bay Freeport Zone, a strategic site due to its proximity to the West Philippine Sea and within the Luzon Economic Corridor.

Defense Secretary Teodoro noted that while the government is open to the proposal for its commercial benefits, it will review the plan as a 'business proposal' before making any decisions.