SEOUL, April 15 (AJP) - South Korea’s major shipbuilders are increasingly turning to overseas shipyards to expand their production capabilities, industry sources said on Tuesday.
HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Mipo Dockyard, Hanwha Ocean and Samsung Heavy Industries are acquiring or leasing docks in countries such as Vietnam, the Philippines, Singapore, China, and the United States.
The strategic shift reflects the growing demand for commercial vessels worldwide and the limited ability of South Korean yards to accommodate the increasing orders.
HD Korea Shipbuilding & Offshore Engineering has begun constructing four 115,000-ton bulk carriers ordered by Hong Kong-based SITO Shipping at its Subic facility in the Philippines.
The company is also building four vessels of the same class for Japan’s Nissen Kaiun at the same site. The Subic shipyard — approximately 110 kilometers northwest of Manila — was leased in May 2024 from U.S. private equity firm Cerberus Capital. Originally used for maintenance and repairs, the dock was converted to full-scale shipbuilding operations by the end of last year. All eight vessels are slated for delivery in 2028.
Meanwhile, HD Hyundai Mipo Dockyard is investing more than 100 billion won ($75 million) to expand its operations in Vietnam. The company’s joint venture with the Vietnam Shipbuilding Industry Corporation, known as HD Hyundai Vietnam Shipbuilding, plans to raise its annual output from 15 to 23 vessels by 2030. The expansion comes amid a growing number of orders from European and African tanker operators.
Hanwha Ocean is also expanding its international footprint.
The company recently acquired Singapore-based marine equipment manufacturer Dynameq Holdings through a public offering and subsequently installed a new management team. Hanwha plans to manufacture 29 offshore plant topside modules at the Singapore facility while retaining hull construction at its primary shipyard in Geoje, South Korea — part of a broader strategy to establish a global production network.
In the United States, Hanwha has secured contracts to build seven vessels at the Philadelphia Shipyard, which it acquired from Norwegian industrial group Aker in December 2024. The company is investing in significant upgrades at the site, anticipating a possible surge in U.S. demand. The Trump administration is reportedly weighing port fees on vessels made in China and has blacklisted China State Shipbuilding Corporation.
Samsung Heavy Industries is pursuing a more collaborative model, exploring partnerships with shipyards across Southeast Asia and subcontracting to Chinese facilities for select European contracts.
Recently, Samsung assigned the construction of four crude oil carriers — ordered by Greece’s Centrofin Management — to Chinese shipbuilder Pax Ocean. In a separate deal in November 2024, Samsung outsourced four Suezmax tankers ordered by Greek operator Dynacom Tankers to a yard in Zhoushan, in China’s Zhejiang Province.
reporter
Candice Kim
candicekim1121@ajupress.com
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