HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the holding company of the HD Hyundai shipbuilding empire, has provided more details of the decision to merge its two flagship yards.
Splash reported yesterday on the news that HD Hyundai Heavy Industries (HHI) and HD Hyundai Mipo (HMD), both based in Ulsan, will merge this December.
“China and Japan, Korea’s key competitors, have also recently completed mergers between their respective No. 1 and No. 2 shipbuilders to strengthen competitiveness. The launch of HHI stands out as a merger between the world’s leading large and mid-sized shipbuilders, expected to significantly expand overall capacity and market reach,” the company explained in a release.
In particular, the company said the merger will provide HHI with an opportunity to strengthen its competitiveness in the defence sector, something that is expected to pick up as South Korea joins Donald Trump’s bid to resuscitate American shipbuilding.
The group will also establish a new overseas business entity within its shipbuilding division. Scheduled to be established in Singapore this December, the new entity will serve as a regional hub overseeing overseas production sites such as HD Hyundai Vietnam Shipbuilding, HD Hyundai Heavy Industries Philippines, and HD Hyundai Vina, the tentative name given to the recently acquired Vietnamese facility acquired from Doosan Heavy Industries. It will manage overseas operations including new yard development and business cooperation.
“This move is aimed at regaining market share in the commercial ship sector—such as bulk carriers and tankers—where Korean shipbuilders are struggling against Chinese rivals,” the company explained in a release.
“This restructuring reflects our strategic vision to broaden markets and strengthen shipbuilding. With the launch of the consolidated entity, we will drive market expansion and secure unrivalled technologies to lead the future shipbuilding industry,” said an HD KSOE official.
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