HD Korea Shipbuilding & Offshore Engineering, the mid-tier holding company of HD Hyundai, plans to add “digital engineering·manufacturing platform development and supply business” to its business purposes at the regular shareholders’ meeting on the 31st. The goal is to sell the “method of building a shipyard” to the global market. This includes know-how in designing and constructing ship manufacturing plants, production and operation systems, as well as IT technologies applied in “smart shipyards,” such as welding robots and production data management.
As geopolitical conflicts over logistics hubs, like the blockade of the Strait of Hormuz due to the Iran war, have increased in recent years, the importance of the shipbuilding and shipping industries has grown. Countries like India, Saudi Arabia, and Brazil are investing in shipbuilding to secure stable supply chains. HD Hyundai aims to diversify into a company that not only builds ships but also transfers the “method of building shipyards.”
This strategy also prepares for the eventual decline of the current shipbuilding boom. The industry is cyclical, with surges during supercycles and downturns marked by order gaps and profit declines. Companies are expanding into non-core businesses to diversify revenue and build long-term growth foundations. Hanwha Ocean and Samsung Heavy Industries have also specified new businesses in recent shareholder meetings. Hanwha Ocean formalized its renewable energy business in its articles of incorporation, while Samsung Heavy Industries added education services.
- Selling the Method of Building Shipyards
HD Korea Shipbuilding & Offshore Engineering’s plan to sell shipyard know-how has two main components. First, it will provide comprehensive solutions for constructing new shipyards, covering factory layout design, production processes, and operation systems. Once the infrastructure is established, it plans to supply digital systems for operating shipyards like “smart factories.” These include AI-based 3D ship design systems, production process simulations, and ship lifecycle management systems that track data from design to maintenance. Real-time monitoring systems for production status and equipment operation are also part of the offering. Essentially, HD Hyundai will support both the hardware (shipyard facilities) and software (IT systems) needed for operation. For existing shipyards, it can sell only the software. HD Hyundai stated, “This is meaningful as it productizes our technology and know-how.” Exporting these systems also creates a “lock-in effect” through follow-up services like maintenance.
- Hanwha Ocean Expands into Renewable Energy
Hanwha Ocean added renewable energy power generation, energy supply and sales, and consulting related to power projects to its business purposes at the shareholders’ meeting. It specifically emphasized expanding renewable energy, particularly wind power, which it has actively pursued. In December of last year, Hanwha Ocean secured a 2.6 trillion Korean won contract with Hyundai Engineering & Construction for the “Shinan Uiyeol Offshore Wind Power Project,” a 390-megawatt offshore wind farm in Sinan County, South Jeolla Province. The global renewable energy market is growing rapidly, and wind power projects require specialized installation vessels. Since Hanwha Ocean can build these vessels at its Geoje Shipyard, it can create synergies with its existing shipbuilding business.
Samsung Heavy Industries also drew attention by adding education services to its business purposes. It plans to reopen its training center in Sacheon County, South Gyeongsang Province, and generate additional revenue by leasing facilities for external training. Like HD Hyundai, Samsung Heavy Industries is actively transferring technology and supply chain know-how. On the 13th, it established a joint research base with San Diego State University (SDSU) in the U.S. Last year, it expanded into ship modification and shipyard modernization consulting in the U.S. through a partnership with design and procurement specialist DSEC.