HD Hyundai Accelerates Establishment of Joint Shipyard in India with Government-Linked MOU

HD Hyundai's project to establish a new joint shipyard in India is set to expand through cooperation with the Indian central government. This development is seen as the result of integrating South Korea's advanced shipbuilding technology with India's growing need to expand its manufacturing bases.

Jung Ki-sun, Chairman of HD Hyundai (far right in the back row), and Kim Hyung-gwan, CEO of HD Hyundai Heavy Industries (far right in the front row), were the only domestic businesspeople invited by Indian Prime Minister Narendra Modi in January to attend the Global Energy Leaders Roundtable held at the Prime Minister's residence in New Delhi, India. HD Hyundai

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On April 20, HD Hyundai announced that it had signed a memorandum of understanding (MOU) in New Delhi, India, with NSHIP TN and Sagarmala Finance Corporation to promote the establishment of a joint venture and the construction of essential infrastructure required for investment in a new shipyard.

NSHIP TN is a special purpose company established under the leadership of the VOC Port Authority, part of the Indian central government, and will be responsible for implementing various support policies and incentives from the Indian government in the future.

Previously, in December of last year, HD Hyundai signed a "Memorandum of Understanding on New Shipyard Construction" with the state of Tamil Nadu in southern India. In January, Chairman Jung Gi-sun discussed cooperation measures with Prime Minister Modi at the Global Energy Leaders Roundtable.

Under this agreement, HD Hyundai will establish a new joint venture shipbuilding company (JV) together with the shipbuilding investment fund created by NSHIP TN and Sagarmala Finance Corporation, and will serve as the largest shareholder, overseeing the overall operations of the shipyard.

Before the new joint shipyard is operational, the Indian government plans to place the first orders for domestic shipbuilding with HD Hyundai's shipyards in Korea and dispatch Indian personnel there. These individuals will acquire shipbuilding know-how at HD Hyundai's facilities and later participate in the establishment and operation of the new joint shipyard, thereby facilitating its successful launch.

HD Hyundai also plans to build a digital shipyard in India based on industry-academia cooperation, applying automation and artificial intelligence (AI)-based smart shipbuilding technology to enhance competitiveness throughout the design, production, and operation processes. In addition, the company intends to establish a shipbuilding workforce training center in India to foster talent in the field.

The company will also support domestic partner companies in entering the Indian market. Recognizing that a stable supply chain is essential for the successful operation of the new joint shipyard, HD Hyundai aims to facilitate the entry of domestic shipbuilding equipment suppliers into India, thereby leading to the expansion of Korea's shipbuilding ecosystem for items such as blocks and engines.

An HD Hyundai official stated, "This agreement signifies that shipbuilding industry cooperation between Korea and India has entered the commercialization phase. Securing new orders and establishing new business models by entering the Indian market will further expand the foundation for mutual growth, especially by helping domestic partner companies open new overseas markets."

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