HD Hyundai Heavy Industries
HD Hyundai Heavy Industries Co., Ltd. is the world's largest shipbuilding company and a major heavy equipment manufacturer. Its headquarters are in Ulsan, South Korea.
History
Foundation
Hyundai Shipbuilding & Heavy Industries was established in 1972 by Chung Ju-yung, founder of the Hyundai Group. The early establishment of the company was based on the South Korean government's strong support and Chung's ability to convince partners and clients. The government had a motive to develop the country's industry, moving beyond light manufacturing exports. The government's support included guarantees for foreign loans and investment in the construction of industrial complexes.In the meantime, Chung played a large role in securing technological assistance and convincing lenders. Chung met Charles Longbottom of A&P Appledore, a British ship consulting firm, and secured a recommendation letter to obtain a USD 43 million loan from Barclays. Afterwards, Chung had to secure an actual ship order to obtain a loan approval from Britain's Export Credit Guarantee Department. Chung then successfully won the first order from the Greek shipping magnate George Livanos in 1971. The first order was two Very Large Crude Carriers, each with a capacity of 259,000 deadweight tons.
The initial development of the company was managed by Hyundai Construction, a Hyundai Group subsidiary, which also constructed a shipyard in Ulsan. Hyundai Construction established Hyundai Shipbuilding & Heavy Industries in 1972.
After two years, in 1974, HSHI delivered its first ship, Atlantic Baron, to Livanos. HSHI became the world's largest shipbuilding company in 1983.
Separation and Restructuring
In the early 2000s, a succession battle occurred among the sons of the Hyundai group founder, Chung Ju-yung. Although the primary feud was between the second son, Chung Mong-koo, and the fifth son, Chung Mong-hun, the sixth son, Chung Mong-joon, separated himself from the group, taking its heavy industries business arm.In 2002, the company was spun off from the Hyundai Group and formed the Hyundai Heavy Industries Group. In the same year, HHI acquired Samho Heavy Industries from Halla Group, subsequently renaminig it Hyundai Samho Heavy Industries. In 2016, HHI was split into four companies as part of its restructuring plan submitted to its creditors to cope with heavy losses in the business. The restructuring resulted in HHI retaining shipbuilding, offshore, and industrial plants as its core business, with the electric systems, construction equipment, and robot divisions being spun off into separate entities.
In 2019, HHI signed a deal with the Korea Development Bank to acquire Daewoo Shipbuilding & Marine Engineering, one of the world's largest shipbuilding companies and HHI's biggest competitor. For this acquisition, HHI launched Korea Shipbuilding & Offshore Engineering, an intermediate holding company. KSOE became HHI's surviving entity, while the shipbuilding business itself was spun off into a new entity. The deal required antitrust approval from various countries, including China, the European Union, Japan, Kazakhstan, Singapore, and South Korea. Although KSOE successfully obtained approval from China, Kazakhstan, and Singapore, the deal ultimately collapsed after receiving a veto from the EU. KSOE remains the intermediate holding company today, overseeing HHI, Hyundai Mipo Dockyard, and Hyundai Samho Heavy Industries.
Businesses
HHI produces a wide array of vessels, including crude oil carriers, LNG carriers, and container ships. Building on this expertise, the company has successfully evolved into a key producer of naval vessels.On 11 July 2024, Hyundai Heavy Industries became the first Korean shipbuilder to sign a master ship repair agreement with Naval Supply Systems Command, qualifying to participate in the U.S. Navy's MRO business. The company has a partnership with Capital Product Partners to create four specialized ships with equipment for ocean-based carbon capture and storage to be delivered in 2025 and 2026 and at a cost of $300 million.
The company built the launch pad system for South Korea's rocket Naro-1 in 2013. It later manufactured the Nuri launch pad.