The purchase price for the site amounts to about $207.5 million (KRW 290 billion). HD KSOE will take full control of the heavy industrial plant, located in Quang Ngai province on the eastern coast of Vietnam.
Opened in 2006, the 110-hectare site produces desalination plants, boilers and harbor crane systems, among other products.
The previous owner, Doosan Enerbility (formerly Doosan Heavy Industries), is selling the shipyard as part of a corporate reorganization. The company has restructured its foreign operations to reduce debt and focus primarily on electricity generation.
With this acquisition, South Korea’s shipbuilding group HD KSOE is expanding its presence in Southeast Asia. Although South Korea is the world’s second-largest shipbuilding nation – far behind China – it relies on low-cost capacities abroad to remain competitive. In addition to Vietnam, HD Hyundai is also targeting India, where a cooperation with the country’s largest shipyard is planned. Morocco has also recently come into focus for the company.
Doosan Vina is reportedly to be used for the construction of tanks and harbor cranes. The shipyard was originally founded in 1996 as a joint venture with the state-owned Vietnamese shipyard group for ship repairs. Since 2008, Doosan Vina has focused mainly on shipbuilding, and the repair business was discontinued in 2011.
