Hyundai Heavy Industries is reportedly joining a project by India’s Defense Ministry to build fleet support ships for the country’s navy with India’s state-run shipyard.
India’s Ministry of Defense is planning to place an order this year for one of the five fleet support ships to be built by Hyundai Heavy, a deal valued at about 350 billion won ($297 million).
India’s largest state-run Hindustan Shipyard Ltd. will build the other four with technical advice from the Korean shipbuilder, according to local reports Wednesday.
“When Hyundai builds the ship at its plant in Korea, we will dispatch some workers there to learn and experience their technology and technique to build the (remaining) four in India,” Hindustan Shipyard chairman Rear Admiral N. K. Mishra said in a recent interview with the Hindu daily.
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| Indian Prime Minister Narendra Modi poses with Hyundai Heavy Industries chairman Choi Gil-sun at the shipbuilder‘s Ulsan plant in May. HHI |
The business ties between Hyundai Heavy and Hindustan Shipyard began in January when they signed a memorandum of understanding to make submarines for the Indian Navy.
Indian Prime Minister Narendra Modi also visited Hyundai’s Ulsan plant in May to discuss cooperation on future projects, expressing his hopes that Indian shipbuilders can learn Hyundai’s expertise in shipbuilding.
“We’ve been negotiating on our cooperation plans, but nothing has been fixed so far regarding the exact timeline and concrete plans,” the company spokesman said Wednesday.
Hyundai Heavy has recently been expanding its presence in India, with another possible deal from India to build liquefied natural gas carriers.
Reports said GAIL Ltd., India’s largest state-owned gas firm, is scheduled to place an order for 11 carriers this year to transport LNG from the United States to India. Meanwhile, Hyundai recently signed an MOU with India-based engineering major Larson & Toubro on technological support for construction of LNG carriers.
By Suk Gee-hyun (monicasuk@heralcorp.com)
