Moving suppliers into industrial complexes near HD Hyundai subsidiaries Securing cost competitiveness in shipbuilding materials
Officials from Sejin Heavy Industries and from the Ninh Thuy Industrial Park pose for a commemorative photograph after signing a contract on December 10 for plant tenancy at the industrial park in Khanh Hoa Province, Vietnam. Provided by Sejin Heavy Industries
Sejin Heavy Industries is accelerating its move to become an ultra-large production base in Asia by securing a new site in an industrial park in Khanh Hoa Province, Vietnam. The company aims to respond strategically to HD Hyundai Group’s accelerated expansion into Southeast Asia and to establish a production hub that covers the whole of Asia and the Middle East.
Sejin Heavy Industries announced on the 14th that it has signed a tenancy contract for the Ninh Thuy Industrial Park in Khanh Hoa Province, Vietnam. This industrial park is regarded as a core base with excellent logistics accessibility and is home to HD Hyundai Vietnam Shipbuilding (HVS), a subsidiary of HD Hyundai Heavy Industries.
Recently, South Korea’s shipbuilding industry has seen an increase in orders for high value-added vessel types, alongside a rise in production outsourcing to Southeast Asia. This is aimed at securing cost competitiveness against China. In particular, HD Hyundai Group is pursuing a strategy to expand its overseas production bases in Vietnam, the Philippines and India. In line with this, Sejin Heavy Industries has moved to secure a new production base to ensure stable supply of key equipment. Building on this contract, Sejin Heavy Industries plans to push ahead with the establishment of a production hub spanning not only Vietnam but also the Philippines, India and the wider Asian region, as well as the Middle East. The company explained that, with the large-scale order rally by Korea’s “Big Three” shipbuilders and the expansion of the global eco-friendly ship market occurring simultaneously, the importance of local plants in Southeast Asia is expected to grow further.
With this investment, Sejin Heavy Industries will establish a two-pillar global system connecting its headquarters in Ulsan and its production base in Vietnam. Its initial goal is to increase production in Vietnam to more than three times the current level. A Sejin Heavy Industries representative stated, “Investment in the Ninh Thuy Industrial Park will be a decisive opportunity to raise Sejin Heavy Industries’ global competitiveness to the next level,” adding, “We will respond swiftly to changes in clients’ production strategies and dramatically increase the share of overseas sales for the entire group.”
Choi Chang-hwan
AI-translated with ChatGPT. Provided as is; original Korean text prevails.
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