▶ Signed an exclusive business agreement with the Tamil Nadu state government to promote the establishment of a new shipyard ▶ Tamil Nadu state assessed as the most optimal site with climate and rainfall similar to Ulsan, and is expected to have additional large-scale investments in port facilities ▶ Will also be partnering with an Indian state-owned enterprise for port crane business to deliver goliath and jib cranes to local shipyards ▶ "India is a market with strong growth potential, and we hope to expand cooperation and develop it into a new growth engine"   HD Hyundai has initiated a review on the establishment of a new shipyard in India. HD Hyundai announced on Sunday, December 7, that it signed a strategic and comprehensive partnership with the Tamil Nadu state government regarding the establishment of a new shipyard in India. The ceremony was held recently in Madurai, southern India, with the attendance of Tamil Nadu Chief Minister M.K. Stalin, State Industries Minister T.R.B. Rajaa, and Head of Corporate Planning at HD Korea Shipbuilding & Offshore Engineering, Choi Hannae. The Indian government is strategically pursuing the "Maritime Amrit Kaal Vision 2047" in an effort to become one of the world's top five shipbuilding and shipping nations. To achieve this goal, the government is actively reviewing not only the expansion of existing shipyards but also the establishment of new facilities. In practice, the Indian government has shortlisted five states—including Tamil Nadu, Gujarat, and Andhra Pradesh—as candidate sites for the construction of a new shipyard and is currently in the process of identifying the most suitable location. Seeking to revitalize the local economy, the Tamil Nadu state government has made the establishment of a shipyard its top priority and has expanded efforts to provide incentives and subsidies, enhance infrastructure, and secure skilled talent. As a result, the state has ultimately selected HD Hyundai as its project partner for the establishment of the new shipyard. In particular, the Thoothukudi region of Tamil Nadu—cited as one of the candidate sites for the new shipyard—is regarded as an optimal location, with temperature and rainfall conditions similar to those of Ulsan, Korea, where HD Hyundai Heavy Industries is located. It already hosts major Korean companies such as Hyundai Motor Company and Samsung Electronics, and large-scale investments are planned for nearby port facilities, further strengthening expectations for future business expansion. Earlier this month, HD Hyundai also signed a Memorandum of Understanding on the collaboration for maritime & port crane development in India with BEML (Bharat Earth Movers Limited), a state-owned enterprise under the Indian Ministry of Defence, in Bengaluru, southern India. Headquartered in Bengaluru, BEML operates in various sectors including defense and aerospace equipment, mining and construction equipment, and railway and metro vehicles. The company also has multiple manufacturing bases in southern India, including Bengaluru and Kolar. Through this agreement, HD Hyundai plans to strengthen collaboration with BEML across the entire crane manufacturing process—including design, production, and quality assurance—aiming to gradually build port crane manufacturing capabilities within India. Looking ahead, the company also plans to expand its business by supplying goliath and jib cranes to local shipyards in India. In relation to this, HD Hyundai Samho, a shipbuilding affiliate of HD Hyundai, successfully delivered a 600-ton Goliath crane to Cochin Shipyard, India's largest state-owned shipbuilder, in February of this year. In addition, in August, HD Korea Shipbuilding & Offshore Engineering, the intermediary holding company for the shipbuilding division, announced it would acquire HD Hyundai Eco Vina from Doosan Enerbility to further reinforce HD Hyundai's ongoing expansion in the crane business. An HD Hyundai official said, "India is a market with strong growth potential, backed by the government's robust commitment to fostering the shipbuilding industry," adding, "We will continue to expand cooperation with India in the shipbuilding and offshore sectors and develop it into a new growth engine." Earlier in July this year, HD Hyundai signed an MOU with Cochin Shipyard to promote cooperation in a wide range of areas, including design and procurement support, productivity enhancement, and human capital development. More recently, the scope of this partnership has been expanded to include naval vessel projects, further strengthening HD Hyundai's presence in India.

Last November, President Lee Jae-myung announced through the joint fact sheet from the Korea-U.S. summit with President Donald Trump that the U.S. government had expressed its support for Korea’s plan to develop nuclear-powered submarines. This announcement has raised expectations among Korean shipbuilders about advancing nuclear submarine programs. Nuclear submarines generate powerful propulsion from nuclear fission and operate without external air intake, allowing them to remain submerged for extended covert missions while also reaching designated operational areas quickly at maximum speed. In addition, since nuclear submarines equipped with small reactors have larger hulls than conventional submarines, they can carry a greater array of weapons. However, managing the reactor that provides propulsion and addressing the noise and vibration characteristics unique to nuclear submarines remain significant technical challenges. For those reasons, the development of nuclear submarines requires advanced engineering capabilities and a robust national infrastructure for construction and operation. HD Hyundai is at the forefront of next-generation nuclear-powered vessels, collaborating with the U.S. on the development of SMR (Small Modular Reactor)-powered vessels. The company has also secured contracts for performance upgrades of the Republic of Korea Navy’s main submarines and is preparing for overseas submarine exports, demonstrating its advanced technological expertise in the submarine sector. HD Hyundai Expands Capabilities on Its Domestic Submarine-Building Record HD Hyundai Heavy Industries (HHI) has built a total of nine submarines to date. Beginning with the Son Won-il in 2007, the company successfully delivered six 1,800-ton submarines. It also constructed the 3,000-ton submarine Shin Chae-ho, which was launched in September 2021 and delivered in April 2024. In addition, HHI has secured contracts for performance upgrades on three 1,800-ton submarines, underscoring its advanced technological capabilities and competitiveness in the submarine sector. Photo. Sea trials of an 1,800-ton submarine built by HD Hyundai Heavy Industries and delivered to the Republic of Korea Navy in 2016. In June this year, the company also carried out a major overhaul of this diesel-powered submarine.   Jeong Woo-maan, a vice president of HHI, said during the company’s Q3 2025 earnings conference call, “Following the recent merger of HHI and HD Hyundai Mipo, our in-house construction capabilities have expanded. We plan to further enhance our submarine construction capacity, taking into account the Republic of Korea Navy’s combat ships and submarines, as well as Canadian and nuclear-powered submarines, and we are actively moving forward with this plan.” HD Hyundai Applies Lithium Batteries in Submarines for the First Time A representative example is the nation’s first development of a submarine power supply system using lithium-ion polymer batteries. Once a submarine submerges, it is cut off from external air, making engine operation impossible. Therefore, for underwater navigation, it is necessary to use energy storage devices to supply power. Lithium batteries have superior energy storage capacity and can be made lighter compared to the batteries that have traditionally been used in submarines.  Through the application of this lithium battery power supply system, HHI has increased one of the most important performance metrics of submarines—submerged endurance—by more than 1.5 times. Additionally, the sustained underwater top speed has improved by more than three times. HD Hyundai Prepares for Submarine Exports to Peru HHI recently signed a letter of intent (LOI) with Shipyard Marine Industrial Services (SIMA) for the joint development and construction of a 1,500-ton submarine for the Peruvian Navy. Choi Taebok, a vice president at HHI said, “Once we establish a successful track record in submarine development with SIMA, it will strengthen our momentum in the global export market. The Peruvian submarine model is already drawing interest from other countries such as Portugal, and we expect to secure export competitiveness in submarines under 2,000-tons.” Photo. A rendering of the export submarine model developed by HD Hyundai Heavy Industries HD Hyundai Accelerates Its Leadership in SMR Technology HD Hyundai is advancing the development of SMR technology, a type of reactor that serves as the power source for nuclear-powered submarines. SMRs are next-generation nuclear plants with capacities under 500 MW, designed to be smaller and more compact than traditional large-scale reactors while offering enhanced safety. In December 2024, HD Hyundai secured a project from TerraPower, a leading U.S. SMR company founded by Bill Gates, to manufacture cylindrical reactor vessels. The vessels will be installed in TerraPower’s 4th-generation Sodium Fast Reactor (SFR), which is planned for deployment in Kemmerer, Wyoming. As a type of SMR, the SFR is noted for its enhanced safety, high technological maturity, and significantly reduced nuclear waste—approximately one-twentieth that of conventional reactors—making it one of the most promising next-generation SMR technologies. Photo. On Friday, August 22, HD Hyundai Chairman Chung Kisun met with TerraPower Chairman and Founder Bill Gates to discuss nuclear supply chain cooperation. Building on its extensive manufacturing experience and advanced technological capabilities, HD Hyundai is expected to lay the groundwork for the commercial deployment of the Natrium reactor. This March, HD Hyundai signed an agreement with TerraPower to study and develop optimized manufacturing methods for the key equipment to be installed in the Natrium reactor. Through this collaboration, the company plans to expand its manufacturing base to support the full-scale commercialization of the Natrium reactor. HD Hyundai is developing a new type of nuclear-powered vessel, a ship that has never been built in Korea. Since SMR-powered vessels and nuclear submarines share fundamentally similar technologies, the expertise gained from this development is expected to be actively leveraged in nuclear submarine construction. In February of this year, HD Hyundai unveiled its first concept model of a container ship design model applying SMR technology at an event held in Houston, U.S. The company is currently developing a 15,000 TEU-class container vessel powered by an MSR (Molten Salt Reactor) engine system. MSR uses molten salt as both coolant and fuel carrier at high temperatures. Development of this SMR-powered vessel is currently around 50 percent complete, with full-scale completion targeted for 2030. Earlier, HD Hyundai received Approval in Principle (AIP) from the American Bureau of Shipping (ABS) for a 15,000 TEU-class container ship design model applying SMR technology. Photo. Rendering of a 15,000 TEU-class container ship powered by SMR, unveiled by HD Korea Shipbuilding & Offshore Engineering In November 2022, HD Hyundai invested USD 30 million in TerraPower. This investment reflects the group’s efforts to leverage its capabilities in the nuclear sector to explore new business opportunities and, in the long term, to secure a leading position in offshore nuclear power and nuclear-powered vessels. Nuclear submarines are recognized as a game changer in determining global naval capabilities. HD Hyundai is taking the lead in preparing for the nuclear submarine era by collaborating with global partners and advancing its technological expertise.  

HD Hyundai marked the beginning of APEC 2025 KOREA by hosting the Future Tech Forum: Shipbuilding on October 27 in Gyeongju, Korea. The Future Tech Forum brings together leaders from global industries, government bodies, institutions, and academia to review the current state of key industries and share their future visions. As part of this year’s APEC CEO Summit, forums were held sequentially under the themes of shipbuilding, defense, retail, AI, digital assets, and future energy. HD Hyundai hosted the shipbuilding forum under the theme “Shaping the Future of Shipbuilding,” bringing together over 600 participants—including Chairman Chung Kisun and other HD Hyundai executives, speakers from Huntington Ingalls Industries(HII), Anduril Industries, and Siemens, as well as representatives from the shipbuilding industry, academia, government, and military sectors—to discuss the future of global shipbuilding. Chairman of HD Hyundai Highlights the Need for a Global Innovation Alliance Chung Kisun, HD Hyundai chairman, opened the forum with his keynote speech mentioning that "AI is revolutionizing both maritime sustainability and digital manufacturing," adding, "For all possibilities to come true, we'll need much closer collaboration across industry boundaries — a truly global alliance of innovation." Chung explained that AI-based autonomous navigation technology has already reached commercial application. In 2022, Avikus, an affiliate of HD Hyundai specializing in autonomous navigation, successfully completed a transpacific voyage using its autonomous navigation solution, on an LNG carrier transporting actual cargo. He also noted that AI is being applied not only to vessel operation but also to shipbuilding processes. HD Hyundai is building a smart shipyard powered by digital twin and robotics technologies, aiming to address the shortage of skilled labor while enhancing productivity and safety across its operations. Chung further underscored Korea–US cooperation in the shipbuilding industry, stating, “With all these innovative capabilities, we are fully ready to be a facilitating partner in this American naval renaissance.” Following the keynote, HD Hyundai’s key global partners took the stage as speakers to discuss innovation and collaboration strategies for the shipbuilding industry. The New Era of Maritime Defense John Kim, Head of Anduril Industries Korea, highlighted the growing importance of next-generation defense technologies capable of responding flexibly and swiftly to increasingly complex unmanned threats such as drones and missiles. He pointed out that the traditional defense industry’s complex procurement structures and slow development processes make it difficult to keep pace with evolving battle environments. To overcome these limitations, he stressed the need for an approach that defines problems directly in the field and implements rapid, practical solutions. In practice, Anduril engineers conduct tests not from behind desks but in real operational environments, identifying and fixing issues on the spot to significantly shorten development timelines. This blend of speed, field orientation, and autonomy has positioned Anduril as a prominent player in next-generation defense technology. Guided by this development philosophy, the company has partnered with HD Hyundai to jointly develop unmanned surface vehicles (USVs). Continuing the session, Kim Hyung-taek, HD Hyundai's Research Director in AI & Unmanned Naval Systems, outlined the company’s strategy to lead the next-generation USV market by integrating HD Hyundai’s vessel autonomy with Anduril’s mission autonomy. HD Hyundai’s vessel autonomy has already been applied to more than 200 merchant vessels worldwide, demonstrating proven operational stability and efficiency. Similarly, Anduril’s mission autonomy—which enables multiple unmanned assets to operate together as a single tactical unit—has been validated through US and allied military programs. The integration of these proven technologies is expected to create an unmanned surface vehicle that will redefine traditional manned naval operations and emerge as a game changer in maritime defense. Maritime Industries: Present & Future Patrick Ryan, Chief Technology Officer (CTO) of the American Bureau of Shipping (ABS), presented six core digital technologies driving transformation in the shipbuilding industry: AI, digital twins, smart shipyards, autonomous systems, remote inspection, and robotics. ABS and HD Hyundai are jointly developing an AI-based design support system to efficiently process vast amounts of information generated during ship design and rule verification, enhancing both design accuracy and productivity. In addition, ABS is developing a system that leverages digital twin technology to incorporate real-time corrosion and structural stress data during actual operations into virtual models, enabling predictions of a vessel’s remaining fatigue life and structural integrity. By supporting data-driven decisions on both the timing and scope of maintenance, the system helps minimize unnecessary maintenance and proactively mitigate potential risks—ultimately enhancing vessel maintenance efficiency. Smart shipyard technologies are also evolving to improve on-site safety and information accessibility for workers by using Augmented Reality (AR) and digital work-support systems, while advancing the efficiency and consistency of shipyard operations. ABS further noted that its validation of HD Hyundai’s transoceanic autonomous navigation project confirmed that autonomous technologies can improve both safety and efficiency in real-world operating conditions. In the field of remote inspection, the use of drones and underwater remotely operated vehicles (ROVs) to inspect hard-to-reach areas such as ballast tanks and confined spaces of the hull is gaining attention. This approach is expected to enhance worker safety and improve maintenance efficiency. Ryan concluded by predicting that quadruped and humanoid robots will play an expanding role in both shipyards and vessel operations, offering new possibilities for automation and solutions to labor shortages. Following his presentation, Aerin Jungmin Lee, Head of the AI Strategy at HD Hyundai, shared the company’s future vision under the theme “A Sustainable Maritime Industry Powered By Data and AI,” introducing in-house developed AI solutions designed to enhance efficiency and safety—OceanWise, HD Agent, and Myeong-Jang Agent. The OceanWise AI-based navigation optimization solution analyzes actual operational data and external maritime information to automatically determine the optimal route and engine output, shifting the paradigm of ship operation from experience-based to data-driven decision-making. HD Agent, an AI assistant trained in shipyard terminology and processes, provides real-time translation of work instructions, quality checks, and safety training materials into multiple languages, improving communication accuracy and operational efficiency at production sites. Myeong-Jang Agent models the problem-solving expertise of seasoned engineers into AI, offering immediate diagnostic and troubleshooting guidance during ship design and production. This allows skilled technical knowledge to be applied and shared consistently across the organization. Future of Shipyards: AI-Driven Manufacturing Innovation Joe Bohman, CTO of Siemens Digital Industries Software, presented an intelligent manufacturing innovation strategy for the shipbuilding industry centered on AI-based digital twins and the Marine Digital Thread. He pointed out the structural limitations of the traditional shipbuilding process, where design, production, and maintenance stages have long operated in isolation, and emphasized that connecting the entire value chain through a single data flow will be key to future competitiveness. By managing data in an integrated AI-powered digital twin environment, shipbuilders can verify constructability and vessel performance during the design phase, reduce process errors and rework in production, and shorten construction time. During vessel operation, predictive equipment monitoring and optimized maintenance scheduling become possible, enhancing both productivity and quality. Building on its collaboration with NVIDIA, Siemens is also creating a digital environment capable of real-time visualization and simulation of ship design and shipyard operations. This solution aims to accelerate decision-making and improve predictability across shipyard sites. A recently released dedication video by NVIDIA for Korea featured HD Hyundai, showcasing scenes of ship construction and naming ceremonies at HD Hyundai’s shipyards, along with 3D vessel designs produced through Siemens’ collaboration with HD Hyundai. Following this, Nicolaus Radford, CEO of Persona AI, identified population decline, aging workforces, and a shortage of skilled labor as key challenges for future industrial sites. As a solution, he proposed humanoids that combine intelligence with physical capability and unveiled the current progress of humanoid robots being jointly developed with HD Hyundai for the shipbuilding industry. Persona AI, in partnership with HD Hyundai, is developing humanoid robots specialized for welding operations in shipyards. To achieve this, the company is analyzing welding movements into detailed action units and collecting human motion data through motion capture. Using this data, thousands of physical simulations and reinforcement learning iterations are being performed to train the robots to maintain balance and execute tasks autonomously in real-world working environments. The humanoid robots jointly developed by HD Hyundai and Persona AI are targeted for deployment at shipyard sites by 2027, and the project is progressing steadily in line with the established timeline. Strategic Collaboration between the US and Korea in Shipbuilding Eric D. Chewning, Executive Vice President of HII, outlined the company’s capabilities in naval shipbuilding and its corporate mission, while announcing plans to expand Korea–US collaboration in shipbuilding. HII, the largest defense shipyard in the United States, operates under the mission to provide the most powerful ships in the world to protect the United States and its allies. The company constructs critical naval assets ranging from destroyers and amphibious ships to aircraft carriers and nuclear submarines, maintaining full lifecycle capabilities from design and construction to operation and maintenance. Drawing on these capabilities, HII is working with HD Hyundai to enhance strategic collaboration between the US and Korean shipbuilding industries. The two companies plan to pursue strategic collaboration across four key areas: advancing shipbuilding capacity to meet the increasing demands of the US Navy, jointly developing next-generation naval logistics ships, sharing design and engineering R&D as well as operational standards, and cooperating on lifecycle support of naval vessels in the Indo-Pacific region.