As the selection of the operator for Morocco’s new shipyard approaches, observations are emerging that HD Hyundai is likely to be the final operator. Moroccan local media have been continuously reporting that HD Hyundai holds an advantage in the operator selection process.

There is an expectation that HD Hyundai will secure a shipyard in Morocco and accelerate the diversification of its overseas production bases.

According to the industry on Feb. 2, the Morocco National Ports Agency is conducting final technical evaluations for the selection of the operator for the new Casablanca shipyard. It is anticipated that the operator will be selected and announced soon.

As attention focuses on the results of the Casablanca shipyard operator selection, HD Hyundai Heavy Industries, HD Hyundai’s shipbuilding affiliate, is reportedly the leading candidate.

HD Hyundai Heavy Industries has formed a consortium with Somajec, a local Moroccan engineering company, to participate in this project.

This project, led by the Morocco National Ports Agency, involves constructing Africa’s largest shipyard with a scale of 210,000㎡ in Casablanca.

If the operator status to operate this project is secured, the shipyard can be used for the next 30 years. It will be possible to perform not only ship construction but also naval vessel maintenance, repair, and overhaul (MRO) for 30 years at Africa’s largest shipyard.

In particular, if HD Hyundai becomes the operator, overseas production base diversification can gain further momentum. This is because it would secure production bases in Africa following the Philippines, Vietnam, and India.

HD Hyundai is establishing production bases in rapidly growing markets such as Southeast Asia and India, and through these, it seeks to simultaneously strengthen cost reduction and secure early market presence in emerging markets.

In fact, HD Hyundai is building ships by leasing the Subic shipyard in the Philippines, and in Vietnam, it has launched HD Hyundai Ecovina, which was acquired from Doosan Enerbility.

HD Hyundai Ecovina produces core equipment for eco-friendly ships, including liquefied natural gas (LNG) plant modules.

In addition, HD Hyundai has signed a business agreement with Cochin Shipyard, India’s largest state-owned shipbuilder, and is pursuing the construction of a joint shipyard with the Tamil Nadu state government in India. Beyond cooperation with Cochin Shipyard, it has embarked on building India’s first local shipyard.

An industry official said, “If HD Hyundai secures production bases in Africa as well, its base diversification strategy can gain even more momentum,” adding, “This is an intention to dramatically reduce costs by diversifying production bases and secure early presence in rapidly growing emerging markets.”

Source:Business Korea