HD Hyundai buys Doosan’s Vietnam yard for $207m

HD Korea Shipbuilding & Offshore Engineering (HD KSOE) has finalized a significant acquisition, purchasing Doosan Vina, the Vietnamese manufacturing arm of Doosan Enerbility, for 290 billion won ($207.5 million). This strategic move grants HD KSOE full ownership of Doosan Vina’s extensive heavy industry facility in Quang Ngai Province, enhancing its operational capabilities in Southeast Asia. The acquisition aligns with HD KSOE’s ambitions to bolster its industrial presence in a region vital for competitive shipbuilding.

Strategic Expansion in Southeast Asia

The acquisition of Doosan Vina marks a pivotal moment for HD KSOE, which aims to transform the 110-hectare facility into a key regional hub for the production of independent cargo tanks and port cranes in Asia. Established in 2006, Doosan Vina specializes in various heavy industrial products, including desalination plants, boilers, and process equipment. This facility not only expands HD KSOE’s manufacturing capacity but also strengthens its foothold in a region where Korean shipbuilders are increasingly seeking cost-effective operational solutions.

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Doosan Enerbility, previously known as Doosan Heavy Industries, has been undergoing a restructuring process focused on reducing debt and refocusing on core power generation activities. This transition has led to the divestment of non-core assets, including the sale of Doosan Vina to HD KSOE. For HD KSOE, this acquisition signifies a deeper commitment to its Vietnamese operations, where the company has already established a shipbuilding presence through HD Hyundai Vietnam Shipbuilding.

HD Hyundai Vietnam Shipbuilding has ambitious plans to increase its production capacity, aiming to construct 15 ships annually, up from its current limit of 12. The yard, which originated in 1996 as a repair joint venture with Vietnam’s state-owned shipyard group, transitioned to shipbuilding in 2008 and ceased repair services by 2011. This successful evolution underscores HD KSOE’s long-term investment strategy in Vietnam and its ongoing commitment to enhancing shipbuilding capabilities in the region.