South Korean conglomerate HD Korea Shipbuilding & Offshore Engineering (HD KSOE) has announced a significant merger between HD Hyundai Mipo (HMD) and HD Hyundai Heavy Industries (HHI). This merger aims to leverage technological expertise, streamline shipyard operations, and integrate skilled workforces, thereby enhancing competitiveness in the global shipbuilding market.
Under the terms of the merger, stakeholders of HMD will receive new shares in HHI, with the consolidated entity anticipated to commence operations in December 2025. Hyundai envisions that this strategic consolidation will strengthen its naval shipbuilding capabilities and broaden its role in the defense sector, targeting an ambitious revenue goal of 10 trillion won (approximately $7.1 billion) in annual defense contracts by 2035.
Furthermore, the new company is set to concentrate on specialized vessels, including icebreakers, in light of increasing global demand driven by Arctic development initiatives.
As part of its global strategy, HD KSOE plans to establish a Singapore-based hub in December, designed to oversee international operations, including existing shipyards in Vietnam and the Philippines. This Southeast Asian hub will focus on coordinating the development of new shipyards, forming international partnerships, and producing various commercial vessels, such as bulk carriers and tankers. The establishment of this center is expected to bolster the company’s standing in the competitive international market.
Moreover, the Singaporean hub will also serve as a platform for advancing eco-friendly ship technologies while enhancing both commercial and defense capabilities. This move aligns with broader industry trends, where key competitors, like major Chinese and Japanese shipbuilders, have engaged in mergers to bolster their market positions.
HD KSOE reports that the global market for new naval shipbuilding contracts over the next decade is projected to encompass approximately 2,100 vessels valued at $360 billion. Recent initiatives from Seoul, including collaborations with the United States and the “Make America Shipbuilding Great Again” project, are expected to further drive demand for South Korean defense exports.
“This restructuring reflects our strategic vision to broaden markets and strengthen shipbuilding,” stated an HD KSOE official, underscoring the goal of expanding market reach and securing cutting-edge technologies to lead the future of the shipbuilding industry.
