HD Hyundai Heavy Industries (HHI) is looking to set up a shipyard in India and has already made a visit this month to scout for potential sites. Reports suggested that the delegates met with officials in Seoul from Korea’s top three shipbuilders including HD Hyundai.
South Korean shipbuilding giant’s possible India foray comes at a time when there’s been a concerted push by the Indian government to strengthen India’s position in the global shipbuilding industry. India holds less than 1 percent of the global shipbuilding market but aims to break into the top 10 ranking by 2030 and top 5 by 2047.
The government has planned to establish a new shipping company to expand its fleet by at least 1,000 ships within a decade. This initiative aims to cut foreign freight costs by one-third by 2047 and increase trade revenue, with joint ownership involving state-run corporations and foreign firms.
The industry insider quoted earlier said with the new environmental regulations and increase in trade, more ships are required. The presence of HHI in India will have multi-fold effects on the Indian shipbuilding industry. He said that it will help in sharing technology with Indian counterparts, boost the confidence of ship owners in Indian shipbuilders, and will lead to shipbuilders investing in latest technologies. The HD Hyundai Group was founded in 1947 by the late Chung Ju-yung but it was only in the early 1970s that Chung decided to enter the shipbuilding segment. In March 1972, ground was broken on an empty stretch of beach to construct what would become one of the world’s largest shipyards.
The Hyundai shipyard stretches over four kilometres along the coast of Mipo Bay in Ulsan, Korea. The company said its shipbuilding division can build all types of ships and has ten large-scale drydocks with nine huge ‘Goliath Cranes.’ It said it delivered more than 2,300 ships to 335 shipowners in 51 countries until 2023. It employs about 15,000 people in production, as well as in engineering and management and administration roles. The company recently reported a fourfold increase in operating profit, reaching 705.2 billion won.
