▶ HD Hyundai holds its first steel-cutting ceremony in the Philippines, attended by the president of the Philippines and the U.S. ambassador ▶ Targeting the bulk carrier and tanker markets, the shipyard aims to play a pivotal role in regaining the market share from China ▶ Will position as a strategic hub for the MASGA initiative, maximizing efficiency through collaboration with the company’s global bases ▶ “An optimal partner with abundant natural resources, skilled talent, and strong government support” — “Strengthening global competitiveness in shipbuilding orders” HD Korea Shipbuilding & Offshore Engineering (HD KSOE) builds on its overseas shipyard success in Vietnam, extending its global presence to the Philippines. HD KSOE, the intermediary holding company of HD Hyundai’s shipbuilding and offshore engineering division, announced on Tuesday, September 2, that it held a steel-cutting ceremony at HD Hyundai Philippines Shipyard (HD Hyundai Philippines) in Subic Bay, the Philippines, marking the commencement of construction of a 115,000-ton petrochemical carrier. This vessel is the first to be built by HD Hyundai Philippines and serves as the lead ship in a series of four petrochemical carriers ordered by an Asia-based shipping company in December last year. The steel-cutting ceremony marked the beginning of the shipbuilding process, symbolized by the cutting of the first steel plate. The ceremony was attended by Ferdinand Marcos Jr., President of the Philippines; MaryKay Carlson, U.S. Ambassador to the Philippines; Lee Sang-hwa, Korean Ambassador to the Philippines; and Kim Sung-joon, CEO of HD KSOE, who joined to celebrate the commencement of HD Hyundai Philippines’ first vessel construction. In May last year, HD KSOE signed a lease agreement with Cerberus Capital for part of the Subic shipyard site, officially launching the facility as the company’s second overseas shipyard. Since establishing HD Hyundai Vietnam Shipbuilding in Khanh Hoa Province in 1996, HD KSOE has expanded it into Southeast Asia’s largest shipyard, capable of constructing over 10 vessels each year. With domestic shipyards facing challenges in the bulk carrier and tanker markets due to intensifying competition from China, HD KSOE expects HD Hyundai Philippines to play a pivotal role in restoring competitiveness in this segment and reclaiming lost market share. HD Hyundai also aims to leverage HD Hyundai Philippines to strengthen economic and security cooperation among Korea, the United States, and the Philippines. Previously, in 2022, HD Hyundai Heavy Industries, a subsidiary of HD KSOE, established a logistics support center in the Philippines to provide MRO (maintenance, repair, and overhaul) services for frigates, patrol vessels, and other naval ships built and delivered to the Philippine government. Building on this experience and technological expertise, HD KSOE plans to establish a cooperative framework with the Philippine government and position HD Hyundai Philippines as another strategic hub for the MASGA (Make American Shipbuilding Great Again) project. The company also expects to maximize efficiency through collaboration with its key overseas bases. Strategically located near HD Hyundai Vietnam Shipbuilding, HD Hyundai Vina (tentative name), and an investment entity in Singapore (planned), HD Hyundai Philippines will be able to leverage a shared supply chain for blocks and ship tanks, as well as ensure integrated workforce operations. On August 27, HD Hyundai also announced plans to establish an investment entity in Singapore to oversee its overseas operations, including the management of production bases such as HD Hyundai Vietnam Shipbuilding, HD Hyundai Philippines, and HD Hyundai Vina. HD KSOE CEO Kim Sung-joon stated, “With strong government support, abundant natural advantages, and highly skilled human resources, the Philippines is emerging as a new shipbuilding powerhouse. By leveraging HD Hyundai Philippines, we will further strengthen our global competitiveness in securing new orders.” Earlier, on Monday, August 25, HD Hyundai signed a Memorandum of Understanding (MOU) with Cerberus Capital and Korea Development Bank to establish the Korea-U.S. Maritime Investment Partnership, marking the first collaboration since the launch of the MASGA initiative.  

▶ Merger agenda approved at board meetings on the 27th, consolidated HD Hyundai Heavy Industries to be launched in December 2025 ▶ Quantitative and qualitative expansion to lead K-Defense, broaden markets, and secure unrivaled technologies ▶ Combined capabilities and know-how to target KRW 10 trillion in annual defense revenue by 2035 ▶ Establishing Singapore-based entity for overseas operations, shipyard development, and global partnerships ▶ “A strategic decision for broader markets and stronger shipbuilding to lead the future industry.” HD Korea Shipbuilding & Offshore Engineering (HD KSOE) announced that it is pursuing restructuring of its shipbuilding business to enhance global competitiveness and expand orders in Korea’s shipbuilding and defense sectors, as the MASGA project is set to go into full swing. On the 27th, HD KSOE, HD Hyundai Heavy Industries (HHI), and HD Hyundai Mipo (HMD) each held board meetings, where HHI and HMD approved a merger agenda. Following an extraordinary general meeting and merger review process, the two companies will relaunch this December as the consolidated HHI. This restructuring aims to maximize both quantitative and qualitative synergies, expand and diversify markets, and secure a decisive competitive edge in the fiercely contested global market through the preemptive development of advanced technologies. China and Japan, Korea’s key competitors, have also recently completed mergers between their respective No. 1 and No. 2 shipbuilders to strengthen competitiveness. The launch of HHI stands out as a merger between the world’s leading large and mid-sized shipbuilders, expected to significantly expand overall capacity and market reach. In particular, the merger is set to provide HHI with a major opportunity to strengthen its competitiveness in the defense sector, which has been drawing increasing global attention. HHI has accumulated advanced technology and extensive know-how as Korea’s leading shipbuilder in terms of naval ship construction and exports. By combining this with HMD’s optimized dock facilities, equipment, and skilled workforce, HHI aims to swiftly capture opportunities in the rapidly growing global defense market. Following the Korea-U.S. summit and the launch of the MASGA project, coupled with the global trend of naval forces enhancing their capabilities, demand for Korean defense is expected to continue rising. According to UK defense journal Janes, the global market for new naval shipbuilding contracts over the next decade is projected to total around 2,100 vessels, valued at approximately USD 360 billion. HHI has set a goal of achieving KRW 10 trillion in annual defense revenue by 2035. HHI also plans to integrate both companies’ track records to further broaden market entry and share in the specialized vessel market—such as icebreakers, where demand is growing with Arctic development. The company further aims to accelerate its technological edge by preemptively securing eco-friendly innovations. By applying these technologies from mid-sized to large vessels—leveraging the combined R&D and design capabilities of both companies—HHI seeks to lead the paradigm shift driven by environmental regulations, while reducing R&D risks, time, and costs. In addition, HD KSOE, together with HHI, will establish a new overseas business entity within its shipbuilding division. Scheduled to be established in Singapore this December, the new entity will serve as a regional hub overseeing overseas production sites such as HD Hyundai Vietnam Shipbuilding, HD Hyundai Heavy Industries Philippines, and HD Hyundai Vina (tentative name). It will manage overseas operations including new yard development and business cooperation. This move is aimed at regaining market share in the commercial ship sector—such as bulk carriers and tankers—where Korean shipbuilders are struggling against Chinese rivals. It also seeks to streamline decision-making processes to accelerate overseas business expansion. “This restructuring reflects our strategic vision to broaden markets and strengthen shipbuilding. With the launch of the consolidated entity, we will drive market expansion and secure unrivaled technologies to lead the future shipbuilding industry,” said an HD KSOE official. Meanwhile, the merger will be carried out by issuing new HHI shares to the shareholders of HMD, the company being absorbed. According to the merger ratio, HMD common shareholders will receive 0.4059146 HHI shares for each HMD share they hold.

South Korea's HD Hyundai Heavy Industries, opens new tab, the world's biggest shipbuilder, said on Wednesday that it plans to merge with its affiliate HD Hyundai Mipo, opens new tab as it targets a bigger slice of the U.S. shipbuilding market. With the merger, the company said it aims to lead U.S.-Korea shipbuilding cooperation projects highlighted during a recent summit between the leaders of the countries that Seoul has dubbed "Make American Shipbuilding Great Again." (See original article below) South Korea's top shipbuilder to acquire affiliate to tap US demand under Trump