Report: HD Hyundai is Shopping for an Indian Shipyard
The Indian media is reporting that South Korea’s HD Hyundai is actively pursuing opportunities in India as it looks for either a location for a yard or a partnership arrangement. It coincides with a larger effort by the Indian government to make the country into a world-class shipbuilder.
A delegation from the South Korean shipbuilder was reported by The Times of India to be touring the country’s facilities and talking with different domestic shipbuilders. The newspaper links the Koreans to L&T among other companies for a possible partnership. In addition, it reports that the South Koreans are spurring competition among the Indian states to attract the possible investments as it assesses potential sites for a shipbuilding facility.
According to the newspaper, the visit by the delegation from Hyundai was in response to a visit by the Indians to South Korea in December. The paper reports India’s Ports and Shipping Ministry secretary T.K. Ramachandran led a delegation to meet with the three largest South Korean shipbuilders. They expressed the government’s interest in collaboration opportunities.
India’s Prime Minister Narendra Modi has declared plans to establish India on the international stage for shipbuilding. The government has said it will be a critical industry for the future while also citing the benefits of reducing international expenses while boosting foreign trade and increasing earnings from the international economies. India, the government declared, will rank among the top 10 shipbuilders by 2030 and the top five by 2047.
HD Hyundai which is the largest in South Korea continues to face strong competition from the Chinese shipbuilders. The South Koreans reported strong profitability in 2024 despite rising costs and capacity limits which see order slots full till at least 2026 or beyond. Hyundai attempted foreign partnerships in the past, including in the Philippines, without success.
The company is mapping its long-term strategy focusing on automation and green technology orders. For its shipyard, it looks to dramatically increase productivity. The company in 2021 launched its plan for the shipyard of the future and cites its use of the latest technologies including AI and digital twins as it seeks to increase productivity and safety.
This week its partner in the shipyard of the future, Palantir Technologies released a video in South Korea highlighting the efforts to create an automated shipyard. Hyundai is quoted as saying it will increase productivity by 30 percent in shipbuilding while also cutting production time for new ships by 30 percent. The goal is to complete the Future of Shipyard project by 2030.