Gunsan shipyard moves towards production restart after nine-year gap

South Korea’s Gunsan Shipyard has taken a significant step towards resuming full shipbuilding operations after securing its first prospective newbuilding order ahead of a planned change in ownership.
The latest development comes as J Ocean Heavy Industries moves ahead with plans to acquire the yard’s assets from HD Hyundai Heavy Industries. The company was established by Eco Prime Marine Pacific, the largest shareholder in HJ Shipbuilding & Construction. The acquisition is expected to be completed before the end of 2026, with preparations for a full production restart scheduled to follow.

J Ocean Heavy Industries has signed a Letter of Intent with an Oceania-based shipowner relating to the construction of four Aframax tankers. If the agreement proceeds to a firm contract, it will mark the return of complete vessel construction at the yard for the first time since 2017.

Originally developed by HD Hyundai Heavy Industries during the previous shipbuilding boom, the Gunsan facility was developed to construct some of the world's largest commercial vessels. Following its last vessel delivery in 2017, however, the facility continued operating on a limited basis as a block manufacturing yard rather than a full-scale shipbuilding site.

A return to operation at Gunsan could help ease capacity constraints in the South Korean shipbuilding sector, where leading yards remain heavily booked for several years. The yard's principal advantage is its ability to offer earlier delivery slots than many domestic competitors. Some of these companies’ orderbooks already extend well into the next decade.