The Gunsan Shipyard in North Jeolla, which halted operations nine years ago and partially resumed in 2023 with block production, has a new owner. The Gunsan Shipyard is set to transition from a block fabrication base to a shipyard that builds completed vessels.
J 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 the transfer of Gunsan Shipyard asset and business cooperation. J Ocean Heavy Industries is a corporation established by EcoPrime Marine Pacific, the largest shareholder of HJ Shipbuilding & Construction, to operate the Gunsan Shipyard.
Under the contract, HD Hyundai Heavy Industries will transfer to J Ocean Heavy Industries all related tangible asset including the Gunsan Shipyard plant, dormitories, and the technical training center. The transaction amount is 780 billion won, and the transfer of ownership is scheduled for Dec. 31. HD Hyundai Heavy Industries said it plans to streamline noncore asset and improve business efficiency through the sale.
The definitive agreement was signed about three months after EcoPrime Marine Pacific and HD Hyundai Heavy Industries entered into a memorandum of agreement (MOA) in Mar. for the transfer of Gunsan Shipyard asset. Since signing the MOA, the two sides have carried out on-site verification and due diligence at the Gunsan Shipyard.
The Gunsan Shipyard halted operations in 2017 due to a slump in the shipbuilding industry and a drought in orders. It resumed block production in 2023, but did not establish a completed-vessel construction system to build a ship from start to finish. After completing the transfer of ownership at the end of this year, J Ocean Heavy Industries plans to refine yard flows and facilities and gradually reinforce the infrastructure needed for completed-vessel construction.
Even after selling the Gunsan Shipyard, HD Hyundai Heavy Industries will provide design services, raw material purchasing agency services, and technical support related to automated and smart shipyards. J 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 begin shipbuilding processes in stages starting in 2027 and build its first vessel in 2028.
Once the Gunsan Shipyard establishes a completed-vessel construction system, work is expected to spread to ship equipment makers and partner companies in the Gunsan and North Jeolla regions. A J Ocean Heavy Industries official said, "This acquisition is more than simply securing shipyard land and facilities; it will be a major turning point that injects vitality into the broader economy of the North Jeolla region," adding, "We will make thorough preparations to ensure new orders and seamless progress of processes."