HD Hyundai Heavy Industries

HD Hyundai Heavy Industries Co., Ltd.
Native name
에이치디현대중공업 주식회사
Formerly
  • Hyundai Heavy Industries (1978–2023)
Company typePublic
KRX: 329180
Industry
Founded1972 (1972)
Founder
Headquarters
Ulsan
,
South Korea
Area served
Worldwide
Key people
Chung Mong-joon (chairman)
Revenue ₩14.4865 trillion (2024)
₩705.2 billion (2024)
₩621.5 billion (2024)
Total assets ₩19.3909 trillion (2024)
Total equity ₩5.7044 trillion (2024)
Number of employees
15,000 (2025)
ParentHD Korea Shipbuilding & Offshore Engineering
Websitehhi.co.kr
Footnotes / references
[1][2]

HD Hyundai Heavy Industries Co., Ltd. (HHI; Korean: 에이치디현대중공업 주식회사; RR: Eichidi Hyeondae Junggongeop Jusik Hoesa) is the world's largest shipbuilding company and a major heavy equipment manufacturer.[3][4] Its headquarters are in Ulsan, South Korea.

History

Foundation

Hyundai Shipbuilding & Heavy Industries (Korean: 현대조선중공업) was established in 1972 by Chung Ju-yung, founder of the Hyundai Group. The early establishment of the company was based on the South Korean government's strong support and Chung's ability to convince partners and clients. The government had a motive to develop the country's industry, moving beyond light manufacturing exports. The government's support included guarantees for foreign loans and investment in the construction of industrial complexes.

In the meantime, Chung played a large role in securing technological assistance and convincing lenders. Chung met Charles Longbottom of A&P Appledore, a British ship consulting firm, and secured a recommendation letter to obtain a USD 43 million loan from Barclays.[5] Afterwards, Chung had to secure an actual ship order to obtain a loan approval from Britain's Export Credit Guarantee Department. Chung then successfully won the first order from the Greek shipping magnate George Livanos in 1971. The first order was two Very Large Crude Carriers (VLCCs), each with a capacity of 259,000 deadweight tons (DWT).[6]

The initial development of the company was managed by Hyundai Construction, a Hyundai Group subsidiary, which also constructed a shipyard in Ulsan. Hyundai Construction established Hyundai Shipbuilding & Heavy Industries (HSHI) in 1972. After two years, in 1974, HSHI delivered its first ship, Atlantic Baron, to Livanos. HSHI became the world's largest shipbuilding company in 1983. [7][8][9][10]

Separation and Restructuring

In the early 2000s, a succession battle occurred among the sons of the Hyundai group founder, Chung Ju-yung. Although the primary feud was between the second son, Chung Mong-koo, and the fifth son, Chung Mong-hun, the sixth son, Chung Mong-joon, separated himself from the group, taking its heavy industries business arm.[11] In 2002, the company was spun off from the Hyundai Group and formed the Hyundai Heavy Industries Group.[12] In the same year, HHI acquired Samho Heavy Industries from Halla Group, subsequently renaminig it Hyundai Samho Heavy Industries.[13]

In 2016, HHI was split into four companies as part of its restructuring plan submitted to its creditors to cope with heavy losses in the business. The restructuring resulted in HHI retaining shipbuilding, offshore, and industrial plants as its core business, with the electric systems, construction equipment, and robot divisions being spun off into separate entities.[14]

In 2019, HHI signed a deal with the Korea Development Bank to acquire Daewoo Shipbuilding & Marine Engineering (DSME), one of the world's largest shipbuilding companies and HHI's biggest competitor. For this acquisition, HHI launched Korea Shipbuilding & Offshore Engineering (KSOE), an intermediate holding company. KSOE became HHI's surviving entity, while the shipbuilding business itself was spun off into a new entity. The deal required antitrust approval from various countries, including China, the European Union, Japan, Kazakhstan, Singapore, and South Korea. Although KSOE successfully obtained approval from China, Kazakhstan, and Singapore, the deal ultimately collapsed after receiving a veto from the EU. KSOE remains the intermediate holding company today, overseeing HHI, Hyundai Mipo Dockyard, and Hyundai Samho Heavy Industries. [15][16][17]

Businesses

HHI produces a wide array of vessels, including crude oil carriers, LNG carriers, and container ships. Building on this expertise, the company has successfully evolved into a key producer of naval vessels.[18] On 11 July 2024, Hyundai Heavy Industries became the first Korean shipbuilder to sign a master ship repair agreement (MSRA) with Naval Supply Systems Command (NAVSUP), qualifying to participate in the U.S. Navy's MRO business.[19] The company has a partnership with Capital Product Partners to create four specialized ships with equipment for ocean-based carbon capture and storage to be delivered in 2025 and 2026 and at a cost of $300 million.[20]

The company built the launch pad system for South Korea's rocket Naro-1 (KSLV-I) in 2013. It later manufactured the Nuri (KSLV-II) launch pad.[21]

  • A HHI LNG carrier
  • A HHI drillship
  • A HHI FPSO
  • A HHI naval vessel
  • A HHI submarine
  • KSLV-II launch pad

Criticism and controversies

HD Hyundai was alleged by a June 2025 UN expert's report to have provided heavy machinery that has been used to destroy property in the occupied Palestinian territories.[22][23] Amnesty International Korea documented the use of HD Hyundai machinery during the demolitions of Palestinian homes and property in the occupied West Bank.[24]

See also

References

  1. ^ "HD HYUNDAI HEAVY INDUSTRIES 329180". FnGuide. December 2024. Archived from the original on 29 April 2025. Retrieved 29 April 2025.
  2. ^ "About HHI > At a Glance - HD Hyundai Heavy Industries". Archived from the original on 1 August 2023. Retrieved 5 November 2017.
  3. ^ "Bloomberg.com". 19 January 2009. Retrieved 19 January 2009.
  4. ^ "HHI Constructs World's Best Ship for 26 Years Straight". Archived from the original on 15 July 2012. Retrieved 18 November 2008.
  5. ^ Lee, Ka-young; Kim, Mi-geon (11 March 2025). "HD Hyundai vice chair Chung Ki-sun discusses AI shipyard project with Palantir CEO". The Chosun Ilbo.
  6. ^ Lee, Jae-lim; Park, Eun-ji (8 April 2025). "Trump's esteem for Korean shipbuilding six decades in the making". Korea Joongang Daily.
  7. ^ Bruno, Lars; Tenold, Stig. "The basis for South Korea's ascent in the shipbuilding industry, 1970-90". The Mariner's Mirror: 201–217. doi:10.1080/00253359.2011.10708948.
  8. ^ Steers, Richard (1999). Made in Korea: Chung Ju Yung and the Rise of Hyundai. Routledge. p. 96. ISBN 978-0-415-92050-6.
  9. ^ "The last emperor". The Economist. 4 February 1999. Retrieved 11 January 2012.
  10. ^ Park, Young-woo (19 November 2025). "HD Hyundai becomes first shipbuilder to deliver 5,000 vessels". Korea Joongang Daily.
  11. ^ Bae, Ji-sook (4 August 2015). "[SUPER RICH] Saga of 'strife of princes' runs deep at Korean conglomerates". The Korea Herald.
  12. ^ Naidu-Ghelani, Rajeshni (23 July 2012). "South Korea's 10 Biggest Companies". CNBC.
  13. ^ Global Shipbuilding Industry Handbook Volume 2. Eastern Europe - Strategic Information and Contacts. Global Pro Info USA. 26 November 2017. p. 70. ISBN 9781433020070.
  14. ^ Jin, Hyunjoo (15 November 2016). "Hyundai Heavy to be split into 4 firms as part of restructuring plan". Reuters. Seoul.
  15. ^ Park, Sang-soo (8 March 2019). "Hyundai Heavy signs formal deal to take over Daewoo Shipbuilding". Yonhap. Seoul.
  16. ^ Foo, Yun Chee (11 December 2021). "Hyundai, Daewoo tie-up faces EU antitrust veto, sources say". Reuters. Brussels.
  17. ^ Cha, Chang-hee; Cho, Jeehyun (21 March 2022). "KSOE`s shareholders readying action for compensation via e-voting rights". Maeil Business Newspaper.
  18. ^ Park, Seung-joo; Kim, Minu (20 November 2025). "'From a 500-won bill to 5,000 ships': HD Hyundai marks historic milestone". Maeil Business Newspaper.
  19. ^ "HD현대重, 국내 최초 美 함정 MRO 사업 참여 자격 획득". HD Hyundai Heavy Industries. 12 July 2024. Archived from the original on 5 October 2024. Retrieved 5 October 2024.
  20. ^ Paris, Costas (31 January 2024). "A New Solution for CO2 Emissions: Bury Them at Sea". The Wall Street Journal. News Corp. Retrieved 31 January 2024.
  21. ^ "HD현대중공업, 누리호 '발사대 시스템' 만들었다". Kyunghyang Shinmun (in Korean). 26 March 2023.
  22. ^ Farge, Emma (1 July 2025). "'Lucrative' business deals help sustain Israel's Gaza campaign, UN expert says". Reuters. Retrieved 1 July 2025.
  23. ^ "Report of the Special Rapporteur on the situation of human rights in the Palestinian territories occupied since 1967 (Advance edited version)". OHCHR. 16 June 2025. Retrieved 8 July 2025.
  24. ^ "South Korea/Israel/OPT: HD Hyundai machinery used in West Bank demolitions". Amnesty International. 27 March 2025.
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