The Gunsan Shipyard of HD Hyundai Heavy Industries, long referred to as the company’s “sore spot,” has been sold to Echoprime Marine Pacific, a subsidiary of HJ Shipbuilding & Construction. The shipyard had faced prolonged difficulties in sale due to the global downturn in the shipbuilding industry. After shipbuilding operations halted in 2017, it had been used primarily as a site for producing ship structures called “blocks” until recently. However, with the recovery of the shipbuilding sector and increased utilization driven by projects such as the U.S. shipbuilding reconstruction initiative “MASGA,” the sale was finalized.

On the 13th, Echoprime Marine Pacific announced that it had signed a Memorandum of Agreement (MOA) with HD Hyundai Heavy Industries for the transfer of assets, including the site, dock, and production facilities of the Gunsan Shipyard. Echoprime Marine Pacific is a special purpose company (SPC) established by Dongbu Corporation and a private equity fund consortium to acquire HJ Shipbuilding & Construction. Both parties plan to finalize the sale price after due diligence and further discussions.

Through this acquisition, Echoprime aims to expand the business of HJ Shipbuilding & Construction. While HJ Shipbuilding & Construction operates a shipyard in Yeongdo, Busan, it has struggled with limited space for large-scale ship orders. In contrast, the Gunsan Shipyard, built by HD Hyundai Heavy Industries in 2010 within the Gunsan National Industrial Complex in Jeollabuk-do, spans approximately 1.8 million square meters. It boasts a 700-meter dock and a 1,650-ton class Goliath crane, among the largest shipbuilding infrastructures in South Korea. The facility can annually produce up to 12 bulk carriers of 180,000 tons each. With its large docks and site, the shipyard is seen as having potential for special-purpose or large-scale ship production. HD Hyundai Heavy Industries has also agreed to support the normalization of the Gunsan Shipyard by ordering block production volumes for the next three years and providing design, procurement, and technical assistance.

Given HJ Shipbuilding & Construction’s competitiveness in special-purpose vessels and defense sectors, there are discussions about utilizing the Gunsan Shipyard as a production base for specialized ships or as a maintenance, repair, and overhaul (MRO) hub for the U.S. Navy.
Source: The Chosun Daily