South Korea’s largest shipbuilding group, HD Hyundai, will collaborate with Indian local governments to advance the construction of new shipyards there.
On December 8, HD Hyundai announced that it had signed an exclusive business cooperation agreement with the government of Tamil Nadu, India, on December 7 in Madurai regarding the construction of a new shipyard. Currently, India is actively considering plans to expand existing shipyards and build new ones as it strives to become the world’s fifth-largest shipbuilding and maritime power.
Tamil Nadu, where HD Hyundai has signed an agreement, has been selected alongside Gujarat, Andhra Pradesh, and one other state as a candidate location for India’s new shipyard construction. Should Tamil Nadu ultimately be chosen as the site for the new shipyard, HD Hyundai’s chances of being selected as a partner for the Indian shipyard project would significantly increase.
According to Indian media reports, the new shipyard project between HD Hyundai and the state of Tamil Nadu is projected to reach a scale of $2 billion. However, HD Hyundai stated that both the investment scale and specific investment methods remain undetermined at this stage.
HD Hyundai emphasized that the climate conditions, including temperature and precipitation, in the Tuticorin region of Tamil Nadu are similar to those in Ulsan, South Korea, where HD Hyundai Heavy Industries is located. Furthermore, with plans for large-scale investment in surrounding port facilities, the region has been identified as the optimal site.
Earlier this month, HD Hyundai also signed a Memorandum of Understanding (MOU) with BEML, a state-owned enterprise under India’s Ministry of Defense, to expand cooperation in the crane business. Under the agreement, HD Hyundai will collaborate with BEML across the entire crane manufacturing process—including design, production, and quality verification—and plans to supply various types of lifting equipment, including mega cranes and container cranes, to Indian shipyards in the future.
In fact, HD Hyundai has been expanding its presence in the Indian market since July this year. At that time, HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the intermediate holding company for HD Hyundai Group’s shipbuilding business, signed a comprehensive agreement for “long-term cooperation in shipbuilding” with India’s largest state-owned shipbuilder, Cochin Shipyard.
Under the agreement reached in July, both parties plan to provide comprehensive support to Cochin Shipyard in areas including design and procurement, production efficiency enhancement, technical cooperation, and talent development, with the aim of elevating the shipyard’s construction capabilities and standards. Recently, the scope of cooperation has been expanded to include naval vessel projects, further deepening their engagement in the Indian market.
HD Hyundai stated: “The Indian government demonstrates strong commitment to supporting the shipbuilding industry, making it a market with tremendous growth potential. The company will continue to expand cooperation with India in shipbuilding and offshore engineering, positioning it as a new growth engine for the company.”