HD Hyundai looks to buy back block manufacturer it sold six years ago
HD Hyundai Set to Reacquire Block Manufacturer
In a significant move amid the ongoing shipbuilding supercycle, HD Hyundai Heavy Industries is poised to spend approximately $360 million to reacquire a majority stake in Hyundai Hyms, a block manufacturer it sold six years ago. The deal, which involves J& Private Equity, marks a strategic shift for South Korea’s largest shipbuilder as it seeks to bolster its production capabilities.
Background on Hyundai Hyms
Hyundai Hyms was established in 2008 by HD Hyundai Heavy Industries as a specialized block manufacturer. In 2019, the company sold a majority stake to J& Private Equity for $67 million as part of a broader strategy to acquire Daewoo Shipbuilding. Since then, Hyundai Hyms has experienced significant growth, culminating in its public listing on the Seoul stock exchange in January of last year. This acquisition reflects HD Hyundai’s commitment to enhancing its operational efficiency and production capacity.
HD Hyundai Heavy Industries is operating at full capacity, with a backlog of hundreds of vessels on order that extends nearly three years. This high demand for shipbuilding services underscores the urgency of the reacquisition, as the company aims to streamline its supply chain and ensure timely delivery of its projects. The return of Hyundai Hyms to HD Hyundai’s portfolio is expected to strengthen its competitive edge in the global shipbuilding market.
