South Korean shipbuilding giant HD Hyundai announced on Sunday that it will establish its first shipyard in India, selecting Thoothukudi in Tamil Nadu as the project site. The decision was formalised through a memorandum of understanding (MoU) signed in the presence of Tamil Nadu Chief Minister M.K. Stalin, Industries Minister T.R.B. Rajaa, and senior leadership from HD Korea Shipbuilding & Offshore Engineering (KSOE). The investment size has not been disclosed.
According to sources, HD Hyundai had been evaluating multiple states — including Andhra Pradesh and Gujarat — but Tamil Nadu emerged as the preferred destination due to its strong policy framework, thriving heavy engineering ecosystem, and conducive environment for large-scale manufacturing.
Media had first reported in February that the South Korean major was scouting locations in India to set up a shipyard, with delegations visiting Thoothukudi and Cuddalore and holding discussions with L&T for potential collaboration. Later, in May, reports indicated that the Centre had identified land parcels in Tamil Nadu, Andhra Pradesh, and Gujarat for mega shipbuilding and repair hubs. Officials familiar with the developments said HD Hyundai was close to sealing a partnership with Cochin Shipyard Limited (CSL) to build large vessels for intercontinental trade, with Thoothukudi emerging as the likely choice for the project.
This year, HD Hyundai crossed a major milestone by delivering a cumulative 5,000 vessels since its inception — a feat matched by few global shipbuilders. “We operate shipyards in Vietnam, the Philippines, and Saudi Arabia. And now, we are here in India — a nation full of energy, talent and limitless potential, a nation rising with confidence,” said Hannae Choi, Vice President and Head of Corporate Planning at KSOE.
Choi, who visited Thoothukudi with his team on Saturday, said the region offers strategic advantages. “It has a strategic location, favourable climate, and skilled people. I could clearly imagine a mega shipyard being built here. This vision will be realised together with the Government of India, the Government of Tamil Nadu, and HD Hyundai,” he said.
Tamil Nadu Industries Minister T.R.B. Rajaa said the development underscores the global industry’s confidence in the state’s stability, vision, and economic strength. “Thoothukudi offers the climatic and geographic conditions needed for a world-class shipyard. With a strong industrial base and major port infrastructure investments underway, there is a clear pathway for expansion,” he said.
He added that Tamil Nadu identified viable sites early and backed them with talent, infrastructure, and incentives. “The state has provided a dependable and scalable environment for long-term shipyard operations,” Rajaa noted.
The proposed shipyard is expected to significantly boost Tamil Nadu’s maritime manufacturing capabilities and strengthen India’s position in the global shipbuilding ecosystem.
