HJ Heavy Industries Expands with Strategic Shipyard Acquisition
HJ Heavy Industries is poised for significant growth following its acquisition of a large shipyard from HD Hyundai Heavy Industries. This strategic move aims to enhance the company’s maintenance and repair capabilities, particularly with the U.S. Navy. The acquisition, which includes a due diligence phase and valuation negotiations, is expected to bolster HJ Heavy Industries’ operational capacity and service offerings.
Acquisition Details and Future Plans
The acquisition agreement was made between Ecoprime Marine Pacific, the largest shareholder of HJ Heavy Industries, and HD Hyundai Heavy Industries. This deal involves the purchase of a shipyard located in Gunsan, which will allow HJ Heavy Industries to expand its shipbuilding and servicing capabilities beyond its existing facility in Yeongdo. The Gunsan yard, which opened in 2010, features a 700-meter (approximately 2,300-foot) dock and was initially designed to construct 10 to 12 ships annually.
Despite a challenging history that saw operations suspended in 2017 due to a downturn in the shipbuilding industry, the Gunsan yard resumed activity in 2022. It has since been utilized for constructing blocks that are assembled at Hyundai’s Ulsan shipyard. Reports indicate that Hyundai will continue to place orders for blocks at the Gunsan facility post-acquisition and will provide ongoing technical support to HJ Heavy Industries.
HJ Heavy Industries has emerged as a notable player in the shipbuilding sector, having taken over the operations of the financially troubled Hanjin Heavy Industries in the 2010s. After being managed by the Korea Development Bank in 2021, it was sold to Dongbu Engineering & Construction in 2022. Under new management, the company has streamlined its operations and achieved profitability for the first time in over a decade, with strong financial results expected in 2025.
Strengthening Ties with the U.S. Navy
HJ Heavy Industries has made significant strides in its relationship with the U.S. Navy, becoming the first mid-sized Korean shipyard to receive certification from the Navy and the third overall in South Korea. In December 2025, the company secured a maintenance and repair assignment for the USNS Amelia Earhart, a Navy supply ship, which is scheduled to be returned to the U.S. Military Sealift Command in March.
The company recently completed a Master Ship Repair Agreement with the U.S. Navy Supply Systems Command, expanding its qualifications to include repair work on destroyers, frigates, and other naval vessels. This development aligns with the U.S. Navy’s strategy to enhance its repair capabilities and maintain ships closer to their deployment areas, reducing the need for lengthy returns to the United States for repairs.
With the acquisition of the Gunsan yard, HJ Heavy Industries is well-positioned to capitalize on the growing “K-defense” industry and expand its commercial shipbuilding capabilities. This strategic move not only increases the company’s capacity but also enhances its ability to construct larger vessels, paving the way for future growth in both military and commercial sectors.
