HD Hyundai Buys Manufacturer as it Seeks Expansion in Vietnam Shipbuilding
HD Hyundai Expands Shipbuilding Footprint in Vietnam
In a strategic move to bolster its shipbuilding capabilities and compete more effectively with Chinese rivals, South Korea’s HD Hyundai has announced the acquisition of a Vietnamese manufacturing firm. The company is set to purchase Doosan Vina for $207 million, aiming to enhance its production of essential components like tanks and cranes while expanding its shipbuilding operations in Vietnam.
Acquisition of Doosan Vina
HD Korea Shipbuilding and Offshore Engineering (HD KSOE) has finalized an agreement to acquire Doosan Vina, a subsidiary of Doosan Enerbility, located near Da Nang, Vietnam. Established in 2006, Doosan Vina specializes in manufacturing tanks for liquefied natural gas (LNG) plants, port cranes, and thermal power plant boilers. This acquisition is part of HD KSOE’s strategy to meet the rising demand for eco-friendly shipping solutions and advanced gas carrier technologies.
The company emphasizes the importance of expanding its production capabilities to include essential components for LNG and other gas carriers. This acquisition aligns with HD Hyundai’s broader goal of enhancing its competitive edge in the global shipbuilding market, particularly against the backdrop of increasing competition from Chinese shipbuilders.
In addition to the acquisition, HD Hyundai is also ramping up its shipbuilding operations in Vietnam. The company initially entered the Vietnamese market in 1996 as a joint venture focused on ship repair and conversion. Since then, it has successfully completed work on over 900 ships and shifted its focus entirely to shipbuilding in 2011, primarily delivering product and chemical tankers as well as bulk carriers.
Future Expansion Plans
HD Hyundai has ambitious plans for its Vietnamese operations, aiming to increase its shipbuilding capacity from 12 vessels per year to 15. The company is also exploring the possibility of further expanding this capacity to 23 ships annually by 2030. These enhancements are part of a broader initiative to improve operational efficiency and meet the growing demands of the shipbuilding industry.
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Beyond Vietnam, HD Hyundai is actively working to revive the former Hanjin shipbuilding facility in Subic Bay, Philippines, with plans to resume production by early next year. The Philippine yard is expected to reach a capacity of 10 ships per year. Additionally, HD Hyundai is pursuing opportunities in Morocco and has recently established partnerships in the United States and India, further solidifying its international presence.
As the largest shipbuilder in South Korea, HD Hyundai is committed to developing eco-friendly vessels and expanding its capabilities to stay competitive in a challenging market. The company is determined to reclaim its position against the backdrop of fierce price competition from Chinese shipbuilders.
