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South Korean shipbuilding giant HD Hyundai has confirmed plans to establish its first shipyard in India, selecting Thoothukudi in Tamil Nadu as the preferred location for this significant venture.

This development marks a strategic move as the company expands its global operations into one of the world’s emerging maritime hubs.

The decision was formalised through a memorandum of understanding (MoU) signed in the presence of Tamil Nadu’s Chief Minister MK Stalin and Industries Minister TRB Rajaa, along with senior executives from HD Korea Shipbuilding and Offshore Engineering (KSOE). While the exact investment amount was not disclosed, the project is anticipated to be a substantial infusion into the region’s industrial infrastructure.

Although HD Hyundai had been in discussions with other Indian states including Andhra Pradesh and Gujarat, Tamil Nadu was chosen due to its robust policy framework and established heavy engineering ecosystem. This environment was considered optimal for supporting a shipbuilding project of such scale and ambition.

It was earlier reported in February that HD Hyundai was actively scouting for potential Indian sites to set up a shipyard, including visits to Thoothukudi and Cuddalore. Engagements with major Indian firms like Larsen & Toubro were also explored to establish possible collaborations.

In a parallel development, the Indian government identified land for large-scale shipbuilding and repair centres across Andhra Pradesh, Tamil Nadu, and Gujarat. HD Hyundai is reportedly close to finalising a partnership with Cochin Shipyard Limited, which would focus on constructing domestically manufactured large vessels suitable for intercontinental trade.

HD Hyundai recently celebrated a milestone, delivering a total of 5,000 vessels since its inception, a remarkable achievement in the global shipbuilding industry. The company already operates shipyards in multiple countries including Vietnam, the Philippines, and Saudi Arabia, indicating a strategic approach towards expanding its global footprint.

Hannae Choi, Vice President and Head of Corporate Planning at KSOE, expressed great optimism about the potential of Thoothukudi. He highlighted the strategic location, favourable climate, and skilled workforce as key advantages that make the site ideal for a mega shipyard project.

Choi emphasised the company’s confidence in India’s energy, talent, and economic potential, describing the nation as “rising with confidence and purpose.” He envisioned the shipyard project as a collaborative effort involving the Government of India, Tamil Nadu’s state government, and HD Hyundai.

Minister TRB Rajaa welcomed the announcement, stating it reflects the faith leading global industry players have in Tamil Nadu’s vision, economic stability, and strength. He underscored Thoothukudi’s climatic and geographic suitability for world-class shipyard facilities.

Rajaa pointed out that the Tamil Nadu government had proactively identified viable locations, backed by investments in port infrastructure, and provided a clear policy roadmap to support such large-scale initiatives.

The government’s swift coordination, combined with a strong coastal ecosystem and incentives, offers a dependable environment conducive to long-term shipyard operations.

This project will not only augment Tamil Nadu’s industrial base but also significantly enhance India’s capabilities in shipbuilding and maritime trade. With the growing importance of maritime logistics and global shipping, HD Hyundai’s presence in Thoothukudi is poised to bolster India’s position in the international shipbuilding market.

Based On ET News Report