HD Hyundai signed an exclusive pact with Tamil Nadu, advancing its $2bn shipyard proposal to boost India’s maritime manufacturing.
Following the signing of an exclusive deal with the Tamil Nadu government, South Korea’s HD Hyundai is proceeding with plans to establish a significant shipbuilding factory in India. According to a report by Pulse, Maeil Business News Korea’s English outlet, the agreement was finalised on December 7 in Madurai.
According to Indian media reports that Pulse cites, the projected shipyard is expected to require an investment of about USD 2 billion. However, HD Hyundai made it clear that the investment’s amount and structure are still being assessed.
The programme is in line with India’s larger efforts to develop its shipbuilding industry and become the fifth-largest maritime manufacturing base in the world. Along with Gujarat and Andhra Pradesh, Tamil Nadu is one of the four states that have been nominated for the construction of a new shipyard. HD Hyundai is anticipated to become a key partner in India’s flagship shipyard expansion initiative if the state is officially selected.
Due to its comparable climate to Ulsan, the home of HD Hyundai Heavy Industries, and continuous investments in nearby port facilities, the business has identified the Thoothukudi location as a strong candidate for the project.
In HD, Hyundai has been expanding its activities in India over time. In order to improve cooperation in crane production, it inked a cooperation agreement earlier this month with BEML, a public sector organisation under the Ministry of Defence. With ambitions to deliver Goliath and jib cranes to Indian shipyards, the agreement will cover design, production, and quality assurance.
The largest state-owned shipyard in India, Cochin Shipyard, and the major South Korean company signed a long-term memorandum of understanding in July. As part of HD Hyundai’s plan to increase its footprint in India’s rapidly expanding marine industry, the cooperation has lately expanded to encompass navy shipbuilding projects.
SOURCE – MARITIME GATEWAY
