{"id":141027,"date":"2026-09-02T22:46:47","date_gmt":"2026-09-02T22:46:47","guid":{"rendered":"https:\/\/www.europesays.com\/korea\/141027\/"},"modified":"2026-09-02T22:46:47","modified_gmt":"2026-09-02T22:46:47","slug":"hyundai-heavy-industries-withdraws-from-%e2%82%b94000-cr-joint-venture-with-cochin-shipyard-etmanufacturing","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/korea\/141027\/","title":{"rendered":"Hyundai Heavy Industries Withdraws from \u20b94,000 Cr Joint Venture with Cochin Shipyard, ETManufacturing"},"content":{"rendered":"

\"\u200bIn\u200bIn September 2025, the Union Cabinet approved a \u20b969,725 crore package to promote the local shipbuilding industry.MUMBAI: South Korea\u2019s HD Hyundai Heavy Industries<\/a> Co Ltd, the world\u2019s second biggest shipbuilder, is said to have \u201calmost\u201d decided not to pursue a planned \u20b94,000 crore block fabrication joint venture<\/a> with Cochin Shipyard<\/a> Ltd, on land leased from adjacent Cochin Port Authority and Kerala government, multiple sources said, adding that the state-run shipyard proposes to build the facility on its own.<\/p>\n

\u201cWith its attention focussed on setting up a $4 billion, 2.5 million Gross Tonnage capacity anchor shipyard in the greenfield shipbuilding cluster planned at Thoothukudi in Tamil Nadu, Hyundai Heavy Industries is not keen on the Kochi block fabrication facility and has almost decided not to participate in the joint venture. A final decision in this regard will be made in the next few days,\u201d a shipbuilding industry<\/a> source with knowledge of the matter said, asking not to be named.<\/p>\n

Hyundai Heavy Industries could not be reached immediately for comment.<\/p>\n

A block fabrication facility in a shipyard is a specialiSed workshop area where steel plates are cut and welded together to build large sections of a ship (called blocks). The blocks are then painted, fitted with pipes and wires, and moved to a dry dock for final assembly.<\/p>\n

Block construction enables parallel workflows where multiple teams fabricate different vessel sections simultaneously rather than waiting for sequential completion. Each block receives pre-installed equipment, wiring, and systems in accessible workshop environments before final assembly.<\/p>\n

This approach eliminates difficult installations inside completed hulls while weather-protected block fabrication workshops maintain consistent quality. Blocks arrive at assembly docks ready for precise alignment and welding, dramatically accelerating overall construction schedules.<\/p>\n

The planned block fabrication facility will support the new dry dock, the third, at Cochin Shipyard, which has put it in the elite list of global yards that can build large LNG carriers, Capesize and Suezmax vessels, oil rigs, semi-submersibles, and other large vessels.<\/p>\n

\u201cHyundai Heavy Industries\u2019 lack of interest has halted the progress on the project. Cochin Shipyard will do the project on its own without the participation of Hyundai Heavy Industries,\u201d the source cited above said.<\/p>\n

While the absence of Hyundai Heavy Industries will not be a setback in implementing the project, a second source familiar with the development said that the South Korean shipbuilder\u2019s exit will rob Cochin Shipyard of a collaboration with a global giant that would have lent a different aura to the project.<\/p>\n

\u201cAn international collaboration with a top global shipyard would have also helped Cochin Shipyard in tapping the expertise of Hyundai Heavy Industries in designing the layout of the block fabrication facility, etc.,\u201d the second source said.<\/p>\n

\u201cCochin Shipyard will still do the project on its own, but an international collaboration would have given the project an entirely different dimension,\u201d the source noted.<\/p>\n

The likely dropout of Hyundai Heavy Industries will not hurt the construction of the six, 1,700 twenty-foot equivalent units (TEUs) feeder container ships ordered by French container shipping line CMA CGM S A, the world\u2019s third-biggest container carrier, valued at about $360 million, at Cochin Shipyard.<\/p>\n

\u201cThe CMA CGM order<\/a> has nothing to do with the proposed block fabrication facility. The container ship order will not be affected by the departure of Hyundai heavy Industries from the planned joint venture. Cochin Shipyard will buy the main equipment for the ships, including engines, from Hyundai Heavy Industries,\u201d the first source stated.<\/p>\n

The container ships ordered by CMA CGM will be powered by engines from Everllence (formerly MAN Energy Solutions) manufactured in South Korea by Hyundai under a licence agreement with Everllence. Thus, the ships will be built in India with South Korean design, main equipment and technical support from Hyundai Heavy Industries,\u201d the first source added.<\/p>\n

Last year, Mumbai-listed Cochin Shipyard signed a Memorandum of Understanding (MoU) with HD Korea Shipbuilding & Offshore Engineering Co Ltd (KSOE), the holding company of HD Hyundai Heavy Industries, for long term cooperation between the two companies in various domains of shipbuilding and maritime development.<\/p>\n

The MoU envisages long term collaboration, including joint exploration of newbuilding opportunities in India and abroad; sharing of technical expertise to scale up to the global standards in shipbuilding; identification of initiatives to enhance productivity and capacity utilization; joint efforts to upskill and strengthen workforce; and exploration of potential collaboration in other shipbuilding-related projects.<\/p>\n

The collaboration between Cochin Shipyard and Hyundai Heavy Industries played a decisive role in instilling the much-needed comfort and confidence in CMA CGM to order the feeder box ships at the state-owned yard, the first such order for an Indian shipbuilder.<\/p>\n

In September 2025, the Union Cabinet approved a \u20b969,725 crore package to promote the local shipbuilding industry.<\/p>\n

The package includes a \u20b924,736 crore Shipbuilding Financial Assistance Scheme (SBFAS) comprising \u20b920,554 crore for financial assistance to shipyards, \u20b94,001 crore for shipbreaking credit notes (40 per cent of scrap value reimbursed) and \u20b9181 crore for a National Shipbuilding Mission to oversee the initiatives.<\/p>\n

The \u20b925,000 crore Maritime Development Fund (MDF) will comprise \u20b920,000 crore as a Maritime Investment Fund (with 49 per cent government equity) and a \u20b95,000 crore Interest Incentivisation Fund (up to 3 per cent interest incentive). The Maritime Development Fund will be a blended finance model to attract private investment.<\/p>\n

A separate Shipbuilding Development Scheme (SbDS) with a corpus of \u20b919,989 crore was also approved by the cabinet. This includes \u20b99,930 crore for greenfield shipbuilding clusters, \u20b98,261 crore for brownfield expansion, \u20b9305 crore for India Ship Technology Centre (ISTC) and \u20b91,443 crore for risk-related credit cover.\n <\/p>\n

Published On Aug 21, 2026 at 01:15 PM IST<\/p>\n

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