According to the Korean media, HD Hyundai Heavy Industries officially established its Philippine subsidiary (HD HHIP) on June 18th and launched its first recruitment in July. The positions are for welding and assembly-related professionals with at least 5 years of experience, and HD Hyundai Heavy Industries plans to accelerate its expansion in the Southeast Asian shipbuilding market through the establishment of a new Philippine subsidiary and the recruitment of new employees.
In addition to the Southeast Asian market, HD Hyundai Heavy Industries has considered the Latin American market as a strategic priority, and the company’s board of directors approved the establishment of a Peruvian subsidiary in June this year, with plans to set up a shipbuilding base there.
It is reported that the establishment of the Peruvian subsidiary of HD Hyundai Heavy Industries will help promote the “ship modernization” project in Peru.At present, the Peruvian government is replacing the aging fleet to modernize its navy.
As part of the project, in April this year, Peru’s state-owned SIMA Shipyard has entered into a partnership with HD Hyundai Heavy Industries to jointly build four ships locally, in a contract valued at about 640.6 billion won (about $462.3 million), which is scheduled to be delivered in phases by 2030 to the Peruvian Navy.
The order, which includes one 3,400-ton frigate, one 2,200-ton patrol ship and two 1,400-ton amphibious ships, is the largest naval vessel contract between a Latin American country and a Korean shipbuilder. Under the contract, HD Hyundai Heavy Industries is responsible for ship design, equipment supply and technical support; SIMA Shipyard is responsible for the final construction work.
In the second quarter of this year, HD Hyundai Heavy Industries’ special ship business realized an operating profit of KRW 30.5 billion, up about 600 percent from KRW 4.2 billion (about $23 million) in the same period last year. The company expects the proportion of its special ship business to expand to 20 percent this year and plans to realize operating income of 5 trillion won (about $380 million) by 2030.
The naval vessels market is expected to grow at a CAGR of 6.46%, from $19.4 billion in 2024 to $149.6 billion in 2029, according to Modo Intelligence, a global market research firm.
