HD Hyundai Heavy Industries Targets Sales of 37 Trillion Won
HD Hyundai’s shipbuilding affiliates, HD Hyundai Heavy Industries, and HD Hyundai Mipo, were officially launched as ‘integrated HD Hyundai Heavy Industries’ on the 1st. The two companies have been following merger procedures, including approval from the Korea Fair Trade Commission and shareholder meetings, since announcing the merger last August. HD Hyundai hopes that this merger can increase its competitiveness in the defense sector and the Korea-US shipbuilding cooperation project, ‘MASGA Project’.
The integrated HD Hyundai Heavy Industries announced on the 1st that it aims to strengthen its position as the world’s leading shipbuilder by achieving sales of 37 trillion Korean won by 2035. The combined sales of HD Hyundai Heavy Industries and HD Hyundai Mipo last year were 19.1 trillion Korean won, and the companies plan to double this figure in about 10 years. Notably, China has set a goal to increase its defense sector sales to 10 trillion Korean won by 2035, a tenfold increase compared to last year. Prior to the merger, HD Hyundai Heavy Industries held the record for most domestic warship construction and export performance, while HD Hyundai Mipo specialized in warship construction, with docks (shipbuilding spaces), facilities, and human resources designed for this purpose.
A source from HD Hyundai stated, “HD Hyundai Mipo has extensive experience in repairing and building special ships, mostly medium-sized ships, so it is able to build not only various types of ships but also warships.”
HD Hyundai Heavy Industries is also accelerating efforts to secure a leading position in new environmentally friendly technologies. By integrating the R&D and design capabilities of the two companies, the company plans to expand the application of new technologies from medium to large-sized vessels, safeguarding the significant technology gap and seizing market leadership in the future. Market expansion is also anticipated. The integrated HD Hyundai Heavy Industries aims to consolidate both companies’ diverse track records in the special-purpose vessel market, such as icebreakers, which have seen increased demand due to recent Arctic developments, thereby expanding market entry opportunities. In a congratulatory video message, HD Hyundai Chairman Chung Ki-sun stated, “Today marks the beginning of a new history for the Korean shipbuilding industry,” and added, “If the passion of our employees is combined with the technological prowess and expertise of both companies, new innovations will begin.”
Source: Chosun Daily
