HD Korea Shipbuilding and Offshore Engineering, part of the world’s largest shipbuilding group, has signed a $4 billion Memorandum of Understanding with the National Shipbuilding and Heavy Industries Park Tamil Nadu and Sagarmala Finance Corporation. This agreement, formalized on April 20 during South Korean President Lee Jae-myung’s state visit, aims to establish a greenfield shipyard in Thoothukudi, Tamil Nadu, marking the first of its kind by a foreign company in India.
The proposed facility will have an annual production capacity of 3.5 to 4 million tonnes, comparable to India’s total anticipated shipbuilding production for multiple national clusters. HD Hyundai will take a majority stake, focusing on digital operations, while the Tamil Nadu government will hold a 10-12% equity share by providing land and infrastructure. The Maritime Development Fund is expected to hold 20-25%, with the central government offering significant financial support.
Thoothukudi was chosen for its favorable conditions, including low salinity and disaster risk. This initiative is seen as a catalyst for a vibrant shipbuilding ecosystem, attracting various industrial players. HD Hyundai is also negotiating a separate collaboration with Cochin Shipyard, enhancing its presence in India’s maritime sector.
