The South Korean shipbuilding group Hyundai Heavy Industries (HHI) is planning to build a new shipyard in India.
In addition to Tamil Nadu, Andhra Pradesh and Maharashtra are also being shortlisted as possible locations, according to reports. HHI’s partner could be the Indian group Larsen & Toubro (L&T), which operates a large shipyard in Kattupalli.
The Indian government is pursuing ambitious goals to establish the country as a global player in shipbuilding. India currently accounts for less than 1% of global shipbuilding activity. By 2030, however, the country is to become one of the top ten shipbuilding nations, and by 2047 one of the top five.
To achieve this goal, the Indian merchant fleet is to be expanded by at least 1,000 ships over the next ten years. The government also recently presented plans for a new liner shipping company. The “Bharat Container Line” will reportedly have a fleet of 100 ships in operation, including chartered vessels. It is to be a joint venture between state and private players.
HHI’s plans are directly linked to India’s shipbuilding and shipping strategy Maritime India Vision 2030 (MIV 2030), which aims to transform the sector through investment, modernization and international partnerships. The government is increasingly focusing on greater national value creation in shipbuilding in order to reduce dependence on imports and boost the economy.
A central goal of the program is to create a competitive, technologically advanced shipbuilding industry that not only serves the domestic market, but also creates export opportunities.
Cooperation between HHI and an Indian partner would bring far-reaching benefits. In addition to technology transfer, India could gain access to HHI’s global network of suppliers and ship owners.
Industry experts see the project as a great opportunity for both sides. Currently, many shipyards around the world are working to capacity, while demand for new ships is growing – particularly due to increasing environmental regulations and growing global trade.
In the past, HHI has tried to set up shipyards in the Philippines, but was only moderately successful. India’s investment friendliness and ambitious plans now make the country an attractive location for a new shipyard.
HHI was founded in 1947. In the 1970s, the company built one of the world’s largest shipyards in Ulsan, South Korea. By 2023, HHI had delivered more than 2,300 ships to 335 customers in 51 countries. (rup)
