HD Hyundai to Build New Shipyard in Tamil Nadu, Boosting India–South Korea Maritime Ties

Seoul/New Delhi, Dec 2025 : South Korea’s leading shipbuilding conglomerate HD Hyundai has signed a preliminary agreement with the Tamil Nadu government to establish a new shipyard in the state, marking a major milestone in India’s efforts to expand its shipbuilding capacity and strengthen maritime infrastructure.

According to the company, HD Hyundai selected Tamil Nadu after evaluating five potential states suggested earlier by the Union government, including Gujarat, Andhra Pradesh and Tamil Nadu. A company spokesperson confirmed that Tamil Nadu emerged as the most suitable destination for the ambitious project.

The Tamil Nadu government has identified shipbuilding as a priority sector to revitalise the local economy and generate large-scale employment. It has chosen HD Hyundai as its strategic project partner and plans to offer a range of incentives and subsidies to accelerate the development of the proposed shipyard.

HD Hyundai said the Thoothukudi region was selected as the ideal location due to its favourable climatic conditions. The temperature and rainfall patterns in Thoothukudi are similar to Ulsan, the South Korean port city that hosts HD Hyundai’s primary shipbuilding facilities. This similarity is expected to enable smoother technology adaptation, efficient yard operations and faster project execution.

Tamil Nadu’s strong industrial ecosystem also played a key role in the company’s decision. The state already hosts major South Korean companies such as Hyundai Motor Co. and Samsung Electronics Co., and significant investments are being made in nearby port infrastructure. These factors are seen as conducive to building a globally competitive shipbuilding ecosystem.

An HD Hyundai official said India offers immense long-term growth potential backed by the Union government’s firm commitment to nurturing the shipbuilding and offshore sectors. “We will continue to expand our cooperation with India and develop the shipbuilding and offshore sectors as a new growth engine for our global business,” the official stated.

India’s push toward becoming a global maritime power is being driven by the government’s ambitious “Maritime Amrit Kaal Vision 2047,” which aims to place the country among the world’s top five shipbuilding and shipping nations. The vision aligns with India’s broader “Viksit Bharat 2047” goal of transforming into a developed nation by the centenary year of Independence.

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal recently underlined the importance of South Korea’s role in India’s maritime expansion. He described South Korea as a crucial partner in enhancing shipbuilding capacity and strengthening maritime security, while highlighting New Delhi’s determination to emerge as a global shipbuilding powerhouse.

In an interview with Yonhap News Agency last month, Sonowal emphasised that South Korea’s rapid economic transformation offers valuable lessons for India. As part of the maritime roadmap, India aims to enter the top ten shipbuilding nations by 2030 and achieve a top-five position globally by 2047.

To meet these targets, the government plans to invest nearly $24 billion in the maritime sector and expand India’s commercial shipping fleet from around 1,500 vessels to 2,500 vessels over the next two decades. This push is also aimed at strengthening self-reliance in logistics, defence manufacturing and maritime trade.

The minister acknowledged that achieving these goals would require strong international collaboration. He noted that South Korea’s advanced shipbuilding technology and expertise in constructing high-quality vessels on time make it a natural partner for India’s shipbuilding ambitions.

Experts believe HD Hyundai’s entry into Tamil Nadu could significantly transform India’s shipbuilding landscape, enhance technology transfer, create thousands of skilled jobs and support India’s rise as a reliable global shipbuilding hub in the years ahead.

Team Maverick.