The project being pursued by HD Hyundai to establish a new joint venture shipyard in India will be expanded through cooperation with the Indian central government.
HD Hyundai announced on April 20 (Monday) that it had concluded a ‘Memorandum of Understanding (MOU) for building essential infrastructure for investment in a new shipyard and promoting the establishment of a joint venture’ in New Delhi, India, with India’s ‘NSHIP TN’ and ‘Sagarmala Finance Corporation’.
NSHIP TN’ is a Special Purpose Company established under the leadership of the V.O. Chidambaranar Port Authority, which is under the Indian central government, and will be responsible for implementing the Indian government’s support policies and various incentives in the future. Through this, HD Hyundai has succeeded in not only materializing the business structure for the establishment of the new joint venture shipyard but also in expanding the scope of cooperation to the central government.
Previously, HD Hyundai had concluded a ‘Memorandum of Understanding on the construction of a new shipyard’ with the state of Tamil Nadu in southern India last December, and subsequently, in January of this year, Chairman Chung Kisun discussed cooperation measures with Prime Minister Modi at the ‘Global Energy Leader Roundtable’.
In accordance with this MOU, HD Hyundai will establish a new joint venture (JV) shipbuilding company with the ‘Shipbuilding Investment Fund’ created by ‘NSHIP TN’ and the Sagarmala Finance Corporation (SMFCL), and as the largest shareholder, will take overall charge of the shipyard’s entire operations.
The Indian government plans to place initial orders for its domestic shipbuilding demand with HD Hyundai’s domestic shipyards before the new joint venture shipyard becomes operational, while also dispatching its own personnel there. These individuals, who will receive shipbuilding know-how at HD Hyundai’s shipyards, will later participate in the establishment and operation of the new joint venture shipyard, helping to ensure its soft landing.
HD Hyundai plans to support the securing of competitiveness across design, production, and operation by pursuing the construction of a digital shipyard applying automation and AI-based smart shipbuilding technology, based on industry-academia cooperation within India. It also plans to assist in talent development by establishing a shipbuilding human resources development center in India.
It will also help domestic partner companies enter the Indian market. As the establishment of a stable supply chain is essential for the successful operation of the new joint venture shipyard, the company plans to support the local entry of domestic shipbuilding equipment and materials companies, leading to the expansion of the domestic shipbuilding ecosystem, including blocks and engines.
An official from HD Hyundai stated, “This agreement signifies that the shipbuilding industry cooperation between the two countries has entered the commercialization phase,” adding, “Securing new orders and establishing a new business model through entry into the Indian market will also further broaden the foundation for mutual growth by pioneering overseas markets for our domestic equipment and materials partner companies.”
Source: Business Korea