HD Hyundai Heavy Industries announced on June 9 that a delegation led by Keerthana Sampath, Minister of Industries of Tamil Nadu, India, visited the Ulsan shipyard and inspected the shipbuilding site and production operation system.

HD Hyundai signed a memorandum of understanding with the Tamil Nadu state government in December last year to build a new shipyard. In April this year, it expanded the scope of cooperation to the Indian central government, laying the foundation for establishing a local production base. The project is gaining traction as it coincides with the time the Indian government is promoting the strengthening of the maritime industry’s competitiveness, spearheaded by its manufacturing promotion policy, ‘Make in India.’

Tamil Nadu is India’s representative manufacturing hub where automobile, electronics, and heavy industries are concentrated. It is evaluated as an optimal location for a shipyard as it is equipped with excellent port infrastructure and logistics conditions. The newly launched state government is also showing an active attitude toward cooperation with HD Hyundai, putting forward foreign investment attraction and manufacturing competitiveness enhancement as core policies.

It is understood that the Tamil Nadu state government is preparing unprecedented benefits to support the construction of the new shipyard. It is encouraging HD Hyundai’s investment by reviewing a comprehensive incentive package that includes tax benefits and subsidy payments, as well as site development and port hinterland infrastructure construction.

The shipbuilding industry predicts that massive synergy effects will occur if HD Hyundai secures a local production base in India. This is because the demand for merchant ships and special purpose ship construction is expected to surge in line with the Indian government’s maritime industry promotion stance. Furthermore, it is analyzed that securing a long-term revenue source will be possible as the business scope can be expanded to the maintenance, repair, and overhaul (MRO) sector of ships.

An HD Hyundai Heavy Industries official emphasized, “Minister Keerthana’s visit this time is an example that shows the firm will of Tamil Nadu to foster the shipbuilding industry as a core strategic industry,” and added, “We will successfully complete the local business in India through continuous communication and working-level consultations with the state government.”

Source:Business Korea