HD Hyundai will speed up efforts to establish a new joint-venture shipyard in India in cooperation with the Indian central government.
HD Hyundai said on the 21st that on the 20th (local time) in New Delhi, India, it signed a memorandum of understanding (MOU) with India NSHIP TN and Sagarmala Finance Company for "building key infrastructure needed for investment in establishing a new shipyard and promoting the establishment of a joint-venture corporation."
NSHIP TN is a special-purpose corporation led by the port authority under the Indian central government, executing Indian government support policies and various incentives. The scope of cooperation for HD Hyundai's project to establish a new joint-venture shipyard in India has expanded from the state government to the central government.
Earlier, in Dec. last year, HD Hyundai signed an MOU with the southern Indian state of Tamil Nadu on building a new shipyard, and in Jan. this year, Chair Chung Ki-sun discussed cooperation plans with Indian Prime Minister Narendra Modi.
Under the agreement, HD Hyundai will establish a new joint-venture shipbuilding company (JV) together with the shipbuilding investment fund created by NSHIP TN and SMFCL and, as the largest shareholder, will oversee overall shipyard operations.
Before the new joint-venture shipyard begins operation, the Indian government plans to place initial orders for domestic shipbuilding demand with HD Hyundai's shipyards in Korea and dispatch its workforce. Those who acquire shipbuilding know-how at HD Hyundai's shipyards will later take part in establishing and operating the new joint-venture shipyard, helping ensure a soft landing for the JV shipyard.
HD Hyundai plans to build a digital shipyard in India that applies automation and AI-based smart shipbuilding technologies based on industry-academia cooperation, supporting competitiveness across design, production and operations. It also plans to establish a shipbuilding workforce training center in India to nurture talent.
It will also support Korean partner companies' entry into India. As building a stable supply chain is essential for the successful operation of the new joint-venture shipyard, the plan is to support local entry by Korean shipbuilding equipment and materials companies.
An HD Hyundai official said, "This agreement means that cooperation in the shipbuilding industry between the two countries has entered the commercialization stage," adding, "Securing new orders through entry into the Indian market and building a new business model will also broaden the foundation for mutual growth by helping Korean equipment and materials partners open overseas sales channels."