HD Hyundai nears start on Thoothukudi shipyard project

HD Hyundai is expected to begin work next month on a new shipyard in Thoothukudi, Tamil Nadu, India, after signing a final investment agreement with India’s central government and the Tamil Nadu state government for a project valued at about INR 400 billion, equivalent to roughly EUR 3.59 billion at current exchange rates.

The South Korean group is expected to develop the yard in phases through HD Korea Shipbuilding & Offshore Engineering, targeting annual output of 3.5 million gross tons. The yard is expected to build large commercial vessels including very large crude carriers and very large gas carriers, expanding India’s capacity in deep-sea shipbuilding.

Reports said HD Hyundai planned to lead the project through a wholly-owned Indian subsidiary, although talks were continuing on minority equity participation from the State Industries Promotion Corporation of Tamil Nadu and India’s Maritime Development Fund. The proposed facility will form part of the 1,214-hectare Thoothukudi shipbuilding cluster and is expected to include a drydock exceeding 300 metres, along with vendor facilities supporting ship construction.

“While it may take some time for this project to get off the ground, when it does, their investment in India will bring the most needed set of skills in shipbuilding, design and planning - all needed for India to become a ship building nation of some consequence,” Anil Devli, chief executive officer of the Indian National Shipowners’ Association (INSA), was quoted as saying by Livemint.