Unified HD Hyundai Heavy Industries to Launch on December 1
Consolidating Naval and Special-Purpose Vessel Capabilities... Expanding Defense Business
Aiming for 37 Trillion Won in Sales by 2035
HD Hyundai Heavy Industries and HD Hyundai Mipo Dockyard have completed their merger and will officially launch as a single entity on December 1. The unified company will be named "HD Hyundai Heavy Industries." This integration is seen as a strategic restructuring to maximize synergies among shipbuilding affiliates and secure leadership in the global defense and special-purpose ship markets.
The two companies announced on the 23rd that the agenda item "Approval of Merger Agreement" was passed at their respective extraordinary general meetings of shareholders, with 98.54% and 87.56% of attending shareholders voting in favor. Previously, in September, the Fair Trade Commission approved the merger, determining that the combination of the two affiliates would not change the governance structure or raise concerns about competition restrictions.
In August, the two companies announced their merger plan with the goal of leading the Korean defense industry, securing cutting-edge technologies, and diversifying markets. Through this merger, the integrated HD Hyundai Heavy Industries aims to consolidate its medium- and large-sized ship production facilities and technologies in the naval vessel sector to expand its influence in the global defense market. In particular, the company expects to maximize synergies in the defense sector by combining HD Hyundai Mipo Dockyard’s competitive dock and facility capabilities with HD Hyundai Heavy Industries’ advanced naval vessel technologies.
In the special-purpose vessel sector, the companies are also expected to accelerate their entry into high-value markets such as icebreakers. They plan to integrate their research and development (R&D) and design capabilities to reduce technology development risks, respond to environmental regulations, and accelerate the commercialization of new products.
The unified HD Hyundai Heavy Industries has set a goal of achieving 37 trillion won in sales by 2035, including 10 trillion won from the defense sector. This is approximately double the 2024 sales figure of 19 trillion won.
A representative from HD Hyundai Heavy Industries stated, "Shareholders have also recognized the necessity and strategic value of this merger," adding, "We will continue to lead the future shipbuilding market by bringing together the capabilities and expertise of both companies."
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