HD Hyundai Merges Shipbuilding Units to Spearhead Global Market Leadership

South Korea’s HD Hyundai Group has officially merged its two flagship shipbuilding units into a unified entity, targeting $25.2 billion in revenue by 2035 and bolstering global competitiveness, particularly in the defense and green technology sectors.

HD-Hyundai-Heavy-Industries (top) and HD Hyundai Mipo (bottom) shipyards

In a strategic move designed to reshape the global shipbuilding landscape, South Korea’s HD Hyundai Group has officially merged its two flagship shipbuilding subsidiaries-HD Hyundai Heavy Industries and HD Hyundai Mipo-into a single entity, operating under the name HD Hyundai Heavy Industries. According to local sources, this merger aims to enhance global competitiveness, expand market reach, and accelerate the development of next-generation technologies.

The Merger Process and New Structure

The transaction was executed following board approval in August, clearance from the Fair Trade Commission in September, and a shareholder vote in November. Under the swap ratio, Mipo shareholders received 0.4059146 shares of HD Hyundai Heavy Industries for each share held. The consolidated company commenced operations immediately upon the completion of all procedures.

Financial Goals and Synergies

The post-merger entity has set an ambitious revenue target of KRW 37 trillion (approximately USD 25.2 billion) by 2035, with the defense sector expected to contribute KRW 10 trillion.

This consolidation integrates HD Hyundai Heavy Industries' naval expertise with Mipo’s dock capacity and skilled workforce, aiming to secure its position as the world's leading shipbuilder.

Geopolitical Strategy: Targeting the U.S. and the Arctic

Notably, the company is set to support the $150 billion “Make American Shipbuilding Great Again” (MASGA) initiative-a Korea-U.S. collaborative project aimed at revitalizing the American shipbuilding industry. The merger also solidifies HD Hyundai's role in the defense sector, the development of eco-friendly ships, and specialized markets such as icebreakers, amidst rising demand in the Arctic.

Commenting on this momentous event, Chairman Chung Ki-sun stated: “Today marks a new chapter in the history of Korean shipbuilding. The combination of our expertise and the passion of our employees will ignite a new wave of innovation.”

Actor Kim Woo-bin, the face of HD Hyundai’s advertising campaigns, also extended his congratulations, calling the merger a giant leap toward a stronger shipbuilding industry and a fresh start for South Korea.

Optimizing R&D for Competitiveness

The company will proceed to consolidate Research & Development (R&D) and design functions to accelerate sustainable and future-ready technologies. Local sources confirm that this merger positions HD Hyundai to compete more effectively against rivals from China and Japan, while simultaneously expanding its global footprint, particularly in the U.S. market and the defense sector.

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