The integrated HD Hyundai Heavy Industries, created by combining HD Hyundai Heavy Industries and HD Hyundai Mipo, officially launched on the 1st. By merging the world's No. 1 large shipbuilder and a mid-sized shipbuilder, the company aims to achieve economies of scale and secure a commanding technological lead to gain a competitive edge in the rapidly changing shipbuilding and offshore market.
HD Hyundai said that on this day, its institutional sector affiliate in shipbuilding, HD Hyundai Heavy Industries and HD Hyundai Mipo, completed all merger procedures and newly launched as the integrated HD Hyundai Heavy Industries. HD Hyundai Heavy Industries unveiled a goal to achieve 37 trillion won in revenue by 2035 through quantitative and qualitative scaling up.
Previously, HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Heavy Industries, and HD Hyundai Mipo held board meetings in August and approved a merger plan between HD Hyundai Heavy Industries and HD Hyundai Mipo. The merger process was completed after Fair Trade Commission approval in September and approval at an extraordinary shareholders' meeting last month. The merger proceeded by issuing new shares of the surviving company, HD Hyundai Heavy Industries, to shareholders of HD Hyundai Mipo, and, according to the merger ratio, 0.4059146 shares of HD Hyundai Heavy Industries common stock were allotted for each one share of HD Hyundai Mipo common stock.
In August, HD Hyundai released a plan to maximize synergy and diversify its market through the merger of the two companies while proactively developing cutting-edge technologies to secure an overwhelming competitive edge in the intensifying global market.
This is seen as a strategic move to counter the accelerating market restructuring trend, as major competitors such as China and Japan have completed mergers between their No. 1 and No. 2 large shipbuilders to bulk up.
The integrated HD Hyundai Heavy Industries is expected to strengthen its business competitiveness in defense ahead of the launch of "MASGA," a Korea-U.S. shipbuilding cooperation project. The plan is to raise production efficiency by combining the warship-building know-how of the existing HD Hyundai Heavy Industries with the docks, facilities, and human capabilities of HD Hyundai Mipo, which are suitable for warship construction. Through this, it set a goal to expand defense institutional sector revenue to 10 trillion won by 2035, about 10 times the current level.
It will also accelerate the securing of next-generation technologies by preempting eco-friendly new technologies. By pooling the two companies' research and development (R&D) and design capabilities, it plans to expand the application of new technologies from mid-sized vessels to large vessels and secure leadership in future markets.
It also aims to expand the market. The integrated HD Hyundai Heavy Industries plans to combine the two companies' track records in special-purpose vessels such as icebreakers, where demand is growing due to recent Arctic development, to broaden market entry opportunities.
At the same time, the group will proceed with overseas business reorganization. HD Korea Shipbuilding & Offshore Engineering plans to establish an investment company in Singapore responsible for overseas business in the institutional sector of shipbuilding in line with the launch of the integrated HD Hyundai Heavy Industries. This company will manage overseas production bases such as HD Hyundai Vietnam Shipbuilding and HD Hyundai Heavy Industries Philippines and serve as a hub overseeing the identification of new yards and business cooperation.
HD Hyundai Chair Chung Ki-sun said in a congratulatory video message that "today marks the beginning of a new chapter in the history of Korea's shipbuilding industry," adding, "If the technology and know-how of the two companies are combined with the passion of our executives and staff, a new wave of innovation will begin."