HD Hyundai Sets Course for New India Shipyard in Tamil Nadu

HD Hyundai has signed a strategic partnership with the Tamil Nadu state government to establish a new shipyard in India, marking the latest move by the South Korean shipbuilding giant to expand its presence in one of the world’s fastest-growing maritime markets.

The agreement, signed December 7 in Madurai, positions HD Hyundai as Tamil Nadu’s chosen partner for shipyard development after the state emerged as the preferred location among five candidates shortlisted by the Indian government.The ceremony was attended by Tamil Nadu Chief Minister M.K. Stalin, State Industries Minister T.R.B. Rajaa, and Choi Hannae, Head of Corporate Planning at HD Korea Shipbuilding & Offshore Engineering.

The Thoothukudi region of Tamil Nadu is being considered as a prime candidate site, offering climate and rainfall conditions similar to Ulsan, Korea, where HD Hyundai Heavy Industries operates. The region already hosts major Korean companies including Hyundai Motor Company and Samsung Electronics, with additional large-scale port infrastructure investments planned for the area.

The partnership aligns with India’s ambitious “Maritime Amrit Kaal Vision 2047,” which aims to position the country among the world’s top five shipbuilding and shipping nations. The Tamil Nadu government has prioritized shipyard establishment as part of its economic revitalization strategy, offering incentives, subsidies, enhanced infrastructure, and skilled talent development.

Beyond shipbuilding, HD Hyundai is expanding its crane manufacturing capabilities in India through a separate agreement with BEML (Bharat Earth Movers Limited), a state-owned enterprise under the Indian Ministry of Defence. The partnership will focus on design, production, and quality assurance for port cranes, with plans to supply goliath and jib cranes to local shipyards.

HD Hyundai already delivered a 600-ton Goliath crane to Cochin Shipyard in February and has been building its Indian presence through a July agreement with Cochin Shipyard covering design support, productivity enhancement, and workforce development.

“India is a market with strong growth potential, backed by the government’s robust commitment to fostering the shipbuilding industry,” an HD Hyundai official said. “We will continue to expand cooperation with India in the shipbuilding and offshore sectors and develop it into a new growth engine.”

India’s shipbuilding sector has experienced extraordinary growth, with market value surging from approximately $90 million in 2022 to over $1.12 billion by 2024—a twelvefold increase. The sector is projected to continue expanding at an annual growth rate exceeding 60% until 2033.

The HD Hyundai initiative comes amid a wave of international maritime investment in India. In November, Maersk pledged $2 billion to expand APM Terminals Pipavav in Gujarat, while DP World committed $5 billion across green coastal shipping, shipbuilding, and ship repair projects. MSC Mediterranean Shipping Company also announced plans to deploy 12 vessels under the Indian flag following discussions with Prime Minister Narendra Modi.

In early October, CMA CGM signed a letter of intent with Cochin Shipyard Limited to build six dual-fuel LNG containerships in India, marking the first time a major international container shipping company has ordered LNG vessels from an Indian shipyard. The vessels will be registered under the Indian flag with deliveries scheduled between 2029 and 2031.

These private sector commitments are supported by government initiatives including a 250-billion-rupee ($2.9 billion) maritime development fund announced in February for long-term financing of India’s shipbuilding and repair industry.

HD Hyundai’s India expansion is part of a broader global strategy that includes recent agreements with Huntington Ingalls Industries, America’s largest defense shipbuilder, and defense cooperation with Peru’s state-run SIMA shipyard for joint submarine development.