SUBIC BAY FREEPORT — The world is soon to witness a new industry rising here in Subic.

Stratospheric Airship Technologies Sdn Bhd (SAT) of the United Kingdom, a pioneer in the manufacture of commercial airships, chose to base its operations in Subic, projecting jobs for about 2,500 employees once the project goes full-blast.

Subic Bay Metropolitan Authority (SBMA) Administrator Armand C. Arreza, who signed a Memorandum of Agreement with SAT managing director Bryn Lloyd Williams on Thursday, said SAT intends to invest US$500 million to build solar-powered commercial airships that will carry broadband and telecommunications equipment.

He said the company is eyeing to take over an area at the Subic Bay International Airport, which is now used by FedEx as a hub for its Asian operations. FedEx said it will transfer its Asian hub to Guangzhou, China this year.

Williams said the airships will operate at a height of 65,000-70,000 feet — high above the clouds and air movement. During their 15-year lifespan, the airships will be brought down once every five years for repairs.

The design of the airships, Williams added, is based on the early 20th century Zeppelins, but is now “totally different” since inert helium will be used instead of hydrogen so it won’t catch fire.

For this project, Williams said SAT would be also be constructing in Subic “the largest single-spanned building in Southeast Asia.”

“It would be a great sight to behold,” said Arreza, who said the SBMA is bullish about more investments coming into Subic from countries like the United Kingdom and Dubai.

“When the SAT project pushes through, we will see Subic as a high-tech manufacturing center, and this fits very well with what we are trying to do,” said Arreza.

“Our objective is to really expand development in the Subic Freeport and the surrounding regions. With the opening of the Subic-Clark-Tarlac Expressway (SCTEX),
we hope to have more manufacturing jobs move along the
expressway,” he added.

“When we looked at Subic, (we saw that) it had everything we needed — good security, good infrastructure, the airport. It is weather-sheltered, labor force is not a problem; it is in close proximity to Manila, it is a free port, and it is more or less in the middle of the ASEAN region,” Williams said.

For this project, the SBMA has allocated a 10-hectare property at the Subic airport. Once FedEx vacates the area, SAT is expected to establish facilities like giant warehouses, hangars, and its huge single-spanned building.

Williams explained that the high-altitude unmanned airships will provide communications links covering entire countries — a new trend that has promising prospects in view of the telecommunications industry’s rapid growth.

“The key technological advantage here is that we don’t need the ground infrastructure which is too costly and sometimes, very difficult to install. In some places, it gets stoned or vandalized, and weather conditions interfere with its performance,” he said.

“We’re talking to Globe and Smart (the country’s leading telecommunication providers) and they have expressed a high level of interest to augment their land-based and satellite systems,” Williams revealed.

Williams also said the technology they have developed is 30 percent cheaper than the conventional satellite provision.

He added that the SAT technology would also enable many rural areas to be serviced with broadband and phone connections — giving rise to possible services such as telemedicine, distance-learning programs, and other social projects that are relatively inaccessible
or too costly with present technology.

The company expects to see actual production sometime in 2011 or 2012, with SAT producing at least 18 units a year to be sold in the ASEAN market for US$ 70 million each.

“We should be able to work up to a US$1 billion in exports a year,” said Williams. “So far we have identified a market for about 70 units, so that would keep this going for a number of years.”

In the meantime, Williams said SAT is focused on the transfer of European aerospace technology via the academic route.

It also plans to engage universities in Manila in research and development and make school faculties aware of industry needs in terms of manpower and expertise.

Williams said his company has spent US$150-350 million in research and development of the technology.

After locating to Subic, the company — in five year’s time —  would have passed the technology safely into Filipino hands, Williams added. (30)