HD Hyundai Heavy Industries and HD Hyundai Mipo have completed all merger procedures and announced the launch of the 'Integrated HD Hyundai Heavy Industries' on the 1st. Chung Ki-sun, Chairman of HD Hyundai, delivered a video message stating, "Today marks the beginning of a new chapter in the shipbuilding industry of our country," and congratulated the merger of the two companies, emphasizing that "a new wave of innovation will begin by combining the technology and know-how of both companies with the passion of their employees."

With the launch of Integrated HD Hyundai Heavy Industries, the company plans to actively pursue the Korea-U.S. shipbuilding cooperation project 'MASGA Project' and respond to the recent trend of mergers and acquisitions among Chinese and Japanese shipbuilders.

● "Doubling Revenue, Tenfold Defense Sales with Superiority"

HD Hyundai Heavy Industries and HD Hyundai Mipo, which officially announced their merger in August this year, received approval from the Fair Trade Commission in September. Subsequently, on October 23, an extraordinary general meeting of shareholders was held, where the merger plan was passed with 98.54% and 87.56% approval from the attending shareholders of each company.

The Integrated HD Hyundai Heavy Industries, officially launched on the merger date of the 1st, is focusing on the defense sector, including naval vessels. The plan is to leverage HD Hyundai Heavy Industries' shipbuilding technology and HD Hyundai Mipo's optimized facilities and human resources for shipbuilding. With the merger, HD Hyundai plans to increase the number of shipbuilding docks dedicated to naval vessels from the current two to four, thereby maximizing the competitiveness of the MASGA Project and the defense sector.

The industry anticipates that global demand for naval vessel construction will reach approximately 2,100 ships, amounting to $360 billion (about KRW 529 trillion) by 2035. In response, Integrated HD Hyundai Heavy Industries has set a goal to increase its defense sector sales from the current KRW 1 trillion to KRW 10 trillion by 2035.

The company also aims to aggressively target the eco-friendly ship and special-purpose vessel markets. It plans to expand the application of eco-friendly technologies, such as electric propulsion ships, autonomous navigation systems, and wind-assisted propulsion systems, to large vessels. Additionally, it aims to maintain a 'superiority' in high-value-added shipbuilding technologies, such as icebreakers and liquefied carbon dioxide carriers, to drive the upward trend of Korean shipbuilding. HD Hyundai Heavy Industries envisions achieving KRW 37 trillion in sales by 2035 with this strategy, which is double the combined sales of KRW 19 trillion of the two companies last year before the merger.

Furthermore, HD Hyundai plans to establish a joint overseas investment corporation with HD Korea Shipbuilding & Offshore Engineering and Integrated HD Hyundai Heavy Industries to streamline decision-making and increase overseas market share.

● Emergence of a 'Giant Shipbuilder' to Compete with Japan and China

The merger of HD Hyundai Heavy Industries and HD Hyundai Mipo also aims to respond to the recent trend of neighboring countries' shipbuilders merging to form mega shipbuilders. This is due to the establishment of 'mega shipbuilders' following the mergers of the top shipbuilders in China and Japan.

China's largest shipbuilding company, China State Shipbuilding Corporation (CSSC), decided to merge with China Shipbuilding Industry Corporation (CSIC) in July this year. Reports followed that the merger of the two largest shipbuilders in China resulted in the birth of a 'giant shipbuilder.' In Japan, Imabari Shipbuilding, the industry's leader, doubled its stake in Japan Marine United (JMU) from 30% in July, incorporating it as a subsidiary. This acquisition has reportedly elevated the company to the fourth-largest globally.

HD Hyundai stated, "The merger of the two companies is to respond to the accelerating pace of restructuring in the global shipbuilding market," and expressed its ambition to "fully utilize the capabilities of both companies and actively adapt to market changes to significantly increase orders."

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