HD Hyundai Heavy Industries and HD Hyundai Mipo have officially launched as integrated HD Hyundai Heavy Industries. The merged shipbuilder announced plans to achieve revenue of 37 trillion won by 2035 by combining synergistic effects between the two companies and to grow the defense sector to 10 trillion won.

HD Hyundai announced on Dec. 1 that its shipbuilding affiliates HD Hyundai Heavy Industries and HD Hyundai Mipo have completed all merger procedures and newly launched as integrated HD Hyundai Heavy Industries.

Through this integration, HD Hyundai Heavy Industries expressed its determination to achieve revenue of 37 trillion won by 2035 and further solidify its position as the world’s number one shipbuilder.

HD Hyundai Chairman Chung Ki-sun said in a congratulatory video message, “Today is the day when a new chapter in our country’s shipbuilding industry begins,” adding, “If the technological capabilities and know-how of both companies are combined with the passion of executives and employees, new innovation will begin.”

HD Hyundai announced the merger of both companies in August this year, revealing plans to secure absolute competitive advantage in the global market through quantitative and qualitative scale expansion. This was a measure taken as the global shipbuilding market landscape is changing, with major competitors China and Japan consecutively merging their domestic top one and two companies.

In particular, HD Hyundai Heavy Industries plans to secure differentiated competitiveness based on synergies created by merging global number one medium and large-scale shipbuilders. HD Hyundai expects that HD Hyundai Heavy Industries will be able to secure business competitiveness in LNG carrier projects and the defense sector. By combining HD Hyundai Heavy Industries’ existing naval vessel construction technology know-how with HD Hyundai Mipo’s docks, facilities, and human capabilities suitable for naval vessel construction, the company aims to expand defense sector revenue by approximately 10 times to 10 trillion won by 2035.

HD Hyundai Heavy Industries will also accelerate securing next-generation new technologies through preempting eco-friendly new technologies. The company plans to combine both companies’ research and development (R&D) and design capabilities to expand new technology applications from medium-sized to large vessels, maintain super-gap advantages, and preempt leadership in future markets.

The ability to expand markets that HD Hyundai Heavy Industries enters is also an anticipated factor. Integrated HD Hyundai Heavy Industries plans to expand market entry opportunities in the special-purpose vessel market, such as icebreakers where demand is growing due to recent Arctic development, by combining the diverse achievements and experience both companies possess.

Meanwhile, actor Kim Woo-bin, the protagonist of HD Hyundai Heavy Industries’ TV commercial “Really Cool Man,” also sent a congratulatory message. In a video broadcast through internal broadcasting, he said, “I hope this integration will be a leap toward stronger shipbuilding and a new departure toward a greater Republic of Korea,” cheering for the launch of integrated HD Hyundai Heavy Industries.
Source: BusinessKorea