HD Hyundai Boosts Vietnam Shipbuilding with Acquisition and Capacity Expansion

HD Hyundai is significantly expanding its shipbuilding operations in Vietnam through strategic acquisitions and substantial capacity investments. This move aims to bolster its competitive edge against Chinese shipbuilders and meet the escalating global demand for vessels, particularly eco-friendly and specialized carriers.

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Key Takeaways

• HD Hyundai acquires Doosan Vina for $207 million, gaining a manufacturing base for components like tanks and cranes.
• The company plans to increase its Vietnamese shipbuilding capacity, with targets of 15 ships per year and a potential expansion to 23 ships by 2030.
• HD Hyundai Vietnam Shipbuilding is seeking additional land in Khanh Hoa Province to facilitate a yard expansion. The company aims to be operational by 2026.
• The expansion is driven by a growing order backlog estimated at three years’ work.

Strategic Acquisition of Doosan Vina

HD Korea Shipbuilding and Offshore Engineering (HD KSOE) has agreed to acquire Doosan Vina from Doosan Enerbility for $207 million. This acquisition includes a manufacturing facility located south of Da Nang, which produces components such as tanks for LNG plants, port cranes, and thermal power plant boilers. HD KSOE views this as crucial for meeting the increasing demand for LNG and gas carriers and for next-generation eco-friendly shipping solutions.

Expanding Shipbuilding Capacity in Vietnam

HD Hyundai’s Vietnamese operations, established as a joint venture in 1996, have evolved from ship repair to full-scale shipbuilding. The company is actively working to enhance the efficiency of its shipbuilding operations and has announced plans to increase its annual capacity from 12 to 15 vessels. Further expansion is projected, with a goal to reach 23 ships per year by 2030, supported by an investment of approximately $100 million. This expansion is crucial for managing a three-year order backlog and ensuring a stable shipbuilding environment.

Facility Expansion and Future Outlook

HD Hyundai Vietnam Shipbuilding (HD HVS) is discussing with Khanh Hoa Province authorities to secure additional land for its 20-hectare shipyard. If successful, construction could commence in 2025, with the expanded yard becoming operational by 2026. This expansion will increase HD HVS’s annual shipbuilding capacity from 15 to 20 vessels. The company is also seeking to extend its project lifespan beyond the current contract expiry in 2042. HD HVS currently employs around 5,000 local workers and 60 South Korean engineers, and it has successfully delivered over 180 vessels to international clients.

Sources

• S Korea shipbuilders bank on Vietnam as nations plan to double two-way trade, Theinvestor.
• HD Hyundai Buys Manufacturer as it Seeks Expansion in Vietnam Shipbuilding, The Maritime Executive.
• HD Hyundai Vietnam Shipbuilding eyes expansion to meet growing demand :: Lloyd’s List, Lloyd’s List.
• Hyundai Vietnam joint venture to spend $100 mln on shipbuilding capacity expansion, Theinvestor.