NEWS

Collaborations in U.S., Peru, India to boost overseas production to 60 ships annually

By By Jung Han-kook | The Chosun Daily | Nov 12, 2025

View of Cochin Shipyard, India’s largest state-owned shipyard. HD Hyundai announces on the 11th that it signs a strategic cooperation memorandum of understanding (MOU) with Cochin Shipyard to advance the Indian Navy’s landing ship project. The shipbuilding industry assesses that HD Hyundai’s global diversification strategy, pursued over several years, is showing results in various areas. /HD Hyundai

HD Hyundai is participating in the design and construction of next-generation landing ships for the Indian Navy. In July, HD Hyundai signed a memorandum of understanding (MOU) with Kochin Shipyard, India’s largest state-owned shipyard, and announced plans for mutual cooperation. Building on this, the company has now unveiled a concrete plan to participate in the design and technical support for the Indian Navy’s landing ships.

The Indian government announced a defense strengthening plan in September, including the construction of a 175-ship naval fleet. While India has experience building commercial ships and even aircraft carriers, its technological capabilities are still considered lagging compared to South Korea, China, and Japan, which divide the global shipbuilding market. HD Hyundai plans to target India’s naval ship market by providing technical support through this collaboration.

The shipbuilding industry evaluates that HD Hyundai’s global diversification strategy, pursued for years, has started to bear fruit. Following the Philippine shipyard in September, a new shipyard will begin operations in Saudi Arabia next year. Adding the existing Vietnam, production bases will increase to three locations. Collaborating countries now include India, the U.S. where the MASGA project is ongoing, and Peru.

Next Year: Overseas Production Bases for 60 Ships Annually

In 2011, HD Hyundai established a production base in Ninh Phuoc Shipyard in Khanh Hoa Province, Vietnam, capable of building up to 15 ships annually. Chosen in 1996 as the first overseas production base for South Korea’s shipbuilding industry, it continues to this day. With low labor costs and a strategic location to target the Southeast Asian market, the shipyard is currently thriving to the point where its docks are fully occupied. HD Hyundai is also pursuing additional investments. In September, the Subic Shipyard in the Philippines also began operations, starting to build four approximately 120,000-ton class tankers ordered by HD Hyundai from the end of this year. This is a site previously sold by Hanjin Heavy Industries (now HJ Shipbuilding & Construction Co.) to a U.S.-based private equity fund, which HD Hyundai is leasing for 10 years. It is also being used for MRO (maintenance, repair, and overhaul) projects for the Philippine Navy.

A super-large shipyard capable of building up to 40 ships annually in the King Salman Industrial Complex in eastern Saudi Arabia will begin operations next year. It was established through a joint venture between HD Hyundai and Saudi state oil company Aramco. HD Hyundai not only participates in shipbuilding but also receives royalties based on design technology.

Once the three production bases in Vietnam, the Philippines, and Saudi Arabia are established, HD Hyundai will be able to build up to 60 ships annually overseas. The annual maximum production capacity of domestic shipyards owned by HD Hyundai affiliates, including HD Hyundai Heavy Industries, is around 130 ships. This means overseas production bases will account for nearly half of domestic production.

U.S., Peru, and India Establish Collaboration Foundations

HD Hyundai’s overseas collaborations are expanding beyond Asia. In the U.S., the company is jointly challenging the bid for the development of the next-generation military support ship for the U.S. Navy with Huntington Ingalls, which operates the Mississippi Shipyard, and has agreed with Edison Chouest Offshore (ECO) to jointly build medium-sized LNG container carriers at the ECO Louisiana Shipyard until 2028. In April, a contract was also signed with Peru’s state-owned SIMA Shipyard to jointly build four naval ships locally.

This overseas expansion strategy was outlined in 2017. At that time, HD Hyundai’s leadership, including Chairman Jung, who was then the CEO of Hyundai Global Service (now HD Hyundai Marine Solution), judged that expanding overseas markets was essential to withstand another decade-long global shipbuilding slump. An HD Hyundai official said, “That strategy has started to bear fruit.”

Source: The Chosun Daily