Seoul [South Korea], December 8 : South Korean conglomerate HD Hyundai is moving forward with plans to establish a shipyard in India through cooperation with a local state government, as per a report by Pulse, the English service of Maeil Business News Korea.
HD Hyundai announced on Monday that it signed an exclusive agreement for the construction of a new shipyard with the Tamil Nadu state government on Sunday in Madurai, located in southern Tamil Nadu.
India is actively reviewing the expansion of existing shipyards and the construction of new ones as it seeks to become the world's fifth-largest shipbuilding and maritime powerhouse.
Tamil Nadu is one of the four states selected as candidates for new shipyard development, along with Gujarat and Andhra Pradesh, the news report noted.
If Tamil Nadu is confirmed as the location for the new shipyard, HD Hyundai would become a strong candidate to participate as India's shipyard development partner, the Pulse report said.
Citing an Indian media report, the Pulse report said the project is expected to be worth about USD 2 billion. HD Hyundai, however, said the scale and method of investment have not yet been determined.
HD Hyundai emphasized that the Thoothukudi region in Tamil Nadu is considered an optimal site due to its climate and rainfall conditions being similar to Ulsan - where HD Hyundai Heavy Industries Co. is based - as well as large-scale investment plans for nearby port facilities.
HD Hyundai also signed a business cooperation agreement earlier this month with BEML Ltd, a state-owned company under India's Ministry of Defense, to expand crane business collaboration.
The company will work with BEML across the entire crane manufacturing process - design, production, and quality assurance - and plans to supply Goliath and jib cranes to Indian shipyards in the future.
In July, HD Hyundai signed a comprehensive memorandum of understanding with India's largest state-owned shipbuilder, Cochin Shipyard, to pursue long-term cooperation in the shipbuilding sector. It recently expanded cooperation into naval vessel projects as part of its strategy to penetrate the Indian market.
"India is a market with strong government commitment to developing its shipbuilding industry and holds high growth potential," said an official from HD Hyundai, as per the Pulse report. "We will continue to expand cooperation with India in shipbuilding and offshore sectors to secure new growth engines."
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