HD Hyundai Finalizes Its First International Contract for an Icebreaker

The Swedish Maritime Authority and HD Hyundai Heavy Industries completed the contract for the construction of a new icebreaker to support operations in the Baltic. The vessel, which is critical for modernizing Sweden’s fleet, also marks the entry of South Korea’s shipbuilders into this segment of the international market.

HD Hyundai reports the contract is valued at $348.9 million for one icebreaker due for delivery in 2029. The vessel, which will be 126 meters (413 feet) in length, will be approximately 15,000 tons displacement. It will be a Polar Class 4 (PC4) icebreaker, meaning it can handle continuous ice breaking at approximately 1 to 1.2 meters (approximately 3 to 4 feet) in thickness.

Sweden had launched the project in October 2017, with the Maritime Authority submitting preliminary studies and recommending that its fleet of five vessels should be replaced by 2030. It worked with the Finnish Transport Agency and Aker Arctic Technology in Helsinki to develop the design. They said the vessel would be able to maintain a 32-meter (105-foot) wide channel.

Plans called for the vessel to have the capability to be powered by methanol in the future. HD Hyundai reports it will utilize an electric propulsion system. The ship will be used to perform icebreaking as well as fleet operation support, towing operations, and ice management in the Baltic.

According to the Swedish Maritime Administration, its icebreakers are critical to keeping northern ports open, which otherwise could have to close for up to 130 days a year. It highlights the critical role of the maritime trade to the country’s economy while highlighting that five of its six vessels were built in the 1970s and 1980s. The age of the ships has become a challenge and requires additional maintenance to keep them in operation.

A tender was launched in 2025 with a total of four bids, one from Norway, two from Finland, and HD Hyundai from South Korea. In addition to price, which Sweden said was the most important factor, it also considered the delivery timetable and technological capabilities of the yard. In November 2025, HD Hyundai was selected as the winner of the tender.

The results of the tender, however, were challenged in the Swedish courts. The Administrative Court found in favor of the Maritime Administration, but that decision was appealed. The SMA reported on April 14 that the Court of Appeals had decided not to “grant leave,” meaning the lower court’s decision was final and cleared the way for the shipbuilding contract.

HD Hyundai is calling it a “breakthrough” and is in keeping with its plans to expand internationally for specialized vessels. The company is already citing the opportunities with the 2024 ICE Pact between the United States, Canada, and Finland, which projected a $9 billion investment to build 70 to 90 icebreakers over the next decade.

“We will expand into new export markets in the special-purpose vessel sector based on our technological prowess and business integration capabilities,” said HD Hyundai Heavy Industries President Joo Won-ho (Head of Warship and Medium-sized Vessel Business).

Last year, the EU announced it would provide more than $6 million for a program running between 2025 and 2029 to renovate and modernize Sweden’s state icebreakers. It is a joint project with Finland and Estonia to ensure the continued operations of the icebreakers. This winter, the Baltic saw some of its most challenging conditions, placing high demands on the icebreaker fleet as the ice expanded and slowed vessel movements.