HD Hyundai announced on the 20th that it signed a memorandum of understanding (MOU) in New Delhi, India, with Indian special purpose company NSHIP TN and Sagarmala Development Company Limited (SMFCL) for the establishment of core infrastructure required for building a shipyard and for the creation of a joint venture.

NSHIP TN is an entity established under the leadership of VOC Port Authority, which is under the central government of India, and will be responsible for implementing future government support policies and various incentives. Through this agreement, HD Hyundai has expanded its cooperation framework, which had previously been centered on local governments, to the central government, thereby further strengthening the foundation for advancing the project.

Previously, HD Hyundai signed an agreement in December last year with the state of Tamil Nadu in India regarding shipyard construction, and in January this year, Chairman Chung Ki-sun met with Prime Minister Modi to discuss cooperation measures, accelerating the progress of the project.

Under the latest agreement, HD Hyundai plans to establish a joint-venture shipbuilding company together with the shipbuilding investment fund created by NSHIP TN and Sagarmala Development Company, and, as the largest shareholder, take charge of overall operations. The scale of investment and equity structure are currently under discussion.

Until the joint-venture shipyard goes into full operation, the Indian government plans to place orders for part of its domestic shipbuilding demand with HD Hyundai’s shipyards in Korea and to dispatch local personnel there to acquire technology. The trained personnel will later participate in the establishment and operation of the new shipyard.

HD Hyundai also plans to promote the construction of a smart shipyard in India that integrates automation and artificial intelligence (AI), based on industry-academia cooperation. In addition, it will establish a shipbuilding workforce training center to secure skilled professionals.

The company will also support overseas expansion by Korean shipbuilding equipment and materials suppliers. To secure a stable supply chain, HD Hyundai intends to assist related companies, including block and engine manufacturers, in entering India, with the strategy of promoting the global expansion of Korea’s shipbuilding industry ecosystem.

An HD Hyundai official said, “This agreement signifies that bilateral cooperation in the shipbuilding industry has entered a full-scale commercialization phase,” adding, “Entering the Indian market will contribute not only to securing new orders but also to expanding overseas sales channels for partner companies.”

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