On 20th, the ship block manufacturing plant of HYUNDAI HYMS in Mokpo, South Jeolla Province, was found. Upon entering the plant, a massive steel plate, the length of two large tour buses, caught the eye. The identity of the steel plate is a ship block. Despite the sub-zero weather and cold sea breeze, workers equipped with welding helmets and gas masks were busy manufacturing the blocks. Red flames and strong white light intersected above the hands of workers squatting on the steel plate.

20 days ago, workers are producing ship block components at HYUNDAI HYMS Daebul 2 Plant in Mokpo, Jeonnam. /Courtesy of Oh Gi-hwan.

The completed blocks, finished through welding and painting, are headed to HD Hyundai Samho and HD Korea Shipbuilding & Offshore Engineering for shipbuilding. Several blocks come together to form a completed ship. The blocks are used in the curved sections of ships, such as the bow or stern, requiring higher manufacturing technology than flat blocks. Choi Ji-yong, CEO of HYUNDAI HYMS, said, "400 to 450 tons (t) of blocks are produced daily, totaling about 87,000 t annually."

As I stepped outside the plant, independent tanks emerged beyond the completed blocks. The angular shapes and metallic surfaces of the structures, towering seven stories high, evoked images of small spaceships. About 8,700 t of independent tanks are produced here. Independent tanks are a type of storage tank used for liquefied natural gas (LNG) or chemical carriers, supported by their own structure rather than relying on the ship's outer wall.

HYUNDAI HYMS previously manufactured only the upper part of tanks, but has expanded its operations to include lower manufacturing and insulation and painting processes. It plans to increase the production capacity of independent tanks from 5,000 t to 16,000 t by 2026. CEO Choi noted, "Independent tanks are optimized for storing cryogenic, high-pressure gases like LNG or liquefied petroleum gas (LPG)," adding, "The tanks seen now are made from low-temperature steel that can withstand cryogenic environments."

20 days ago, an independent tank top is placed at HYUNDAI HYMS Daebul 2 Plant in Mokpo, Jeonnam. /Courtesy of Oh Gi-hwan.

◇ Plans to enter new businesses such as port cranes amid the rising shipbuilding industry

Riding the wave of the shipbuilding boom, HYUNDAI HYMS has accelerated its entry into new businesses. Alongside the previously mentioned expansion of independent tank processes, it plans to enter the port crane business as well. To this end, it secured a factory site for its Daebul Plant No. 4, covering 28,000 pyeong (about 13 soccer fields), for 30 billion won last September. Port cranes are gigantic cranes used at ports to load and unload containers or cargo, soaring taller than 20 stories of an apartment building.

In the production of port cranes, cooperation with HD Hyundai Samho is planned. Currently, after leasing HYUNDAI HYMS's Daebul Plant No. 4, HD Hyundai Samho is producing port cranes to be supplied to Busan New Port through a partner company. Procedures are underway for HYUNDAI HYMS to take on some of the production volume from HD Hyundai Samho in the future. HYUNDAI HYMS expects to produce about 7 to 10 port cranes per year.

Currently, the global container port crane market is dominated by China's ZPMC, which holds about 80% of the market share. However, recent intensified security conflicts between the U.S. and China have led to Chinese port cranes being labeled as "spy tools," creating cracks in the market. As the U.S. has decided to invest $20 billion (26.5 trillion won) over the next five years to replace Chinese cranes, domestic corporations are also eyeing opportunities.

20 days ago, a worker is looking at a part of a port crane at HYUNDAI HYMS Daebul 4 Plant. /Courtesy of Oh Gi-hwan.

Domestic port construction companies are also promoting the localization of port cranes. HJ Shipbuilding & Construction and HD Hyundai Samho have agreed to produce cranes for Busan New Port, signing supply contracts worth 187 billion won and 179 billion won, respectively, last July. HD Hyundai Samho has also secured orders for cranes to be installed at Gwangyang Port, totaling 206 billion won. CEO Choi stated, "The revenue from the port crane business will account for 10% to 15% of HYUNDAI HYMS's total revenue in the future."

HYUNDAI HYMS recorded sales of 223.2 billion won, an 18% increase from the previous year, operating profit of 21.5 billion won, a 49% rise, and net profit of 16.6 billion won, a 63.7% increase. Established in 2008 under Hyundai Heavy Industries (now HD Korea Shipbuilding & Offshore Engineering), HYUNDAI HYMS was sold to J&PE, a private equity firm, in 2019. Hyundai Heavy Industries had to sell HYUNDAI HYMS to acquire Daewoo Shipbuilding & Marine Engineering, to eliminate concerns that its affiliate equipment company could monopolize the orders from Daewoo's partners.