The Gunsan Shipyard in North Jeolla, which halted operations nine years ago and partially restarted in 2023 with block production, has a new owner. The Gunsan Shipyard is set to shift from a block fabrication base to a shipyard that builds completed vessels.
JE Ocean Heavy Industries said on the 26th that it signed a contract with HD Hyundai Heavy Industries at the Gunsan Shipyard in the No. 2 National Industrial Complex in Gunsan, North Jeolla, for an asset sale and purchase of the Gunsan Shipyard and business cooperation. JE Ocean Heavy Industries is a joint venture established by Ecoprime Marine Pacific, the largest shareholder of HJ Shipbuilding & Construction, and HJ Shipbuilding & Construction to operate the Gunsan Shipyard.
Under the contract, HD Hyundai Heavy Industries will transfer all related tangible asset of the Gunsan Shipyard, including factories, dormitories, and the technical training center, to JE Ocean Heavy Industries. The transaction amount is 780 billion won, and the ownership transfer is scheduled for Dec. 31. HD Hyundai Heavy Industries said it plans to streamline noncore asset through this sale and improve business efficiency.
The main contract was signed about three months after Ecoprime Marine Pacific and HD Hyundai Heavy Industries signed a memorandum of agreement (MOA) in March for the asset sale and purchase of the Gunsan Shipyard. Since the MOA, the two sides have conducted on-site verification and due diligence at the Gunsan Shipyard.
The Gunsan Shipyard halted operations in 2017 amid a shipbuilding downturn and a drought in orders. It resumed block production in 2023, but did not establish a completed-ship construction system that builds a ship from start to finish. After completing the ownership transfer at the end of this year, JE Ocean Heavy Industries plans to reconfigure yard logistics and equipment and gradually reinforce the infrastructure needed for completed-ship construction.
Even after the sale of the Gunsan Shipyard, HD Hyundai Heavy Industries will provide services such as design outsourcing, raw material purchasing agency, and technical support related to automation and smart shipyards. JE Ocean Heavy Industries plans to integrate HJ Shipbuilding & Construction's design capabilities, eco-friendly ship technology, and global network into the operation of the Gunsan Shipyard. It aims to enter shipbuilding processes in phases starting in 2027 and build its first ship in 2028.
Once the Gunsan Shipyard establishes a completed-ship construction system, work is expected to expand to shipbuilding equipment manufacturers and partners in the Gunsan and North Jeolla region. A JE Ocean Heavy Industries official said, "This acquisition will be a major turning point that goes beyond the company merely securing shipyard land and equipment, breathing vitality into the broader North Jeolla economy," adding, "We will make thorough preparations to ensure that new orders come in and processes proceed without a hitch."