HD Hyundai Chairman Chung Ki-sun, right, attends the Korea-India business forum in New Delhi, India, Monday (local time). Yonhap
HD Hyundai , Korea's leading shipbuilding conglomerate, said Tuesday it has forged a partnership with Indian government-backed entities to establish a joint shipyard in India.
HD Hyundai said it signed a memorandum of understanding (MOU) with NSHIP TN and Sagarmala Finance Corporation (SMFCL) of India in New Delhi on Monday (local time) to cooperate in building a joint venture shipbuilding company.
NSHIP TN (National Shipbuilding & Heavy Industries Park) Tamil Nadu is a special-purpose company established by India's port authorities, while SMFCL supports the country's Sagarmala port infrastructure development initiative.
Under the MOU, HD Hyundai will establish the joint venture shipbuilding company with the two entities and take a leading role as the largest shareholder, overseeing overall operations and ultimately building a digital-focused shipyard in India.
The partnership was signed on the occasion of a bilateral summit held between Korean President Lee Jae Myung and Indian Prime Minister Narendra Modi in New Delhi on Monday.
HD Hyundai also aims to foster local talent by establishing a shipbuilding training center and supporting the entry of Korean equipment suppliers into the Indian market.
According to HD Hyundai, the Indian government plans to place initial shipbuilding orders with HD Hyundai's Korean shipyards ahead of the joint shipyard's operation and dispatch local workers to gain hands-on experience.
"The latest deal marks the transition of bilateral shipbuilding cooperation into the business execution phase," said an HD Hyundai official, who added that the partnership is expected to help secure new orders and create opportunities for Korean partners to expand overseas.
Source: Korea Times News
