HD Hyundai Heavy Industries is expanding its special ship division's work area. Previously, the division's work locations were limited to Ulsan, which has a dock (shipyard), and the Global Research and Development Center (GRC) in Seongnam, Gyeonggi Province, where the naval technology research center is located. However, there are plans to secure workspace in Busan, which is close to Ulsan, to attract talent.
According to the shipbuilding industry on the 16th, HD Hyundai Heavy Industries has recently decided to expand the workplace for design-related departments within its special ship division. Previously, the design-related departments were solely based in Ulsan, but now, to facilitate talent attraction, workspace will be created in Busan using shared offices.
The expansion of the workplace will target employees responsible for comprehensive design, hull design, chief engineer design, captain design, and equipment design within the special ship division. A representative of HD Hyundai Heavy Industries noted, "It was decided considering that many of the related personnel reside in the Busan area." The company is also conducting recruitment for experienced positions in the special operations division starting from the 10th.
HD Hyundai Heavy Industries' efforts to attract talent are interpreted as aiming to target the U.S. Navy's maintenance, repair, and operation (MRO) market and the Korea Destroyers for the Next Generation (KDDX) project, among others.
Last month, HD Hyundai Heavy Industries participated in a bid for the U.S. Maritime Administration's 7th Fleet MRO project and is constructing two patrol boats and six frigates in the Philippines. The company is also preparing for a 2 trillion won project related to surface ships and submarines in the Philippines, as well as a 600 billion won performance enhancement project for the Jangbogo II-class submarine. The KDDX project, which amounts to 7.8 trillion won, is also nearing the announcement of the contractor.
This year, HD Hyundai Heavy Industries has set a target to secure contracts for up to three MRO projects for U.S. Navy vessels in its special ship division. The order target amount is set at 2.3 trillion won, which is 58.6% higher than the previous year's target.
In the industry, there are expectations that HD Hyundai Heavy Industries' revenue from the special ship division, which was 1.1447 trillion won last year, will exceed 6 trillion won by 2034 if it successfully enters the U.S. Navy MRO and new build markets.
Dong-ho Jung, a researcher at Mirae Asset Securities, stated, "HD Hyundai Heavy Industries faced limitations in winning contracts for vessels because it does not own a shipyard in the U.S., but with the U.S. pursuing relevant legislative changes, the likelihood of securing contracts is high in the future. They possess strengths in areas such as small surface combat ships and logistics support vessels that the U.S. Navy plans to procure in large quantities, which will provide them with sufficient competitiveness."