Editor's Note: This article is the ninth installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations.
SEOUL, March 06 (AJP) - HD Hyundai Heavy Industries, a dominant force in global shipbuilding, recently secured a $314 million contract with Malaysia’s MISC for two Very Large Ethane Carriers (VLECs), reinforcing its leadership in high-value vessel construction.
The deal underscores the South Korean shipbuilder’s continued strength in specialized ship manufacturing.
Founded in 1972, HD Hyundai has evolved into an industrial giant, employing 15,000 workers across its 6.8 million-square-meter facility in Ulsan. The company ranks second worldwide in order backlog as of early 2025, strategically prioritizing high-value ships such as liquefied natural gas (LNG) carriers, petroleum product tankers, and eco-friendly vessels.
Within South Korea, HD Hyundai commands an overwhelming 80.3 percent market share by vessel weight, far outpacing rivals Samsung Heavy Industries (11.9 percent) and Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering) at 5.4 percent.
The competitive landscape is evolving, however, as HD Hyundai and Hanwha Ocean have set aside years of fierce rivalry to form a strategic partnership in naval vessel exports.
Under this collaboration, HD Hyundai will lead surface vessel sales while Hanwha Ocean will focus on submarines, following a joint setback in 2024 when both firms lost a major Australian frigate contract to Japanese and German competitors.
As the shipbuilding industry rides a cyclical upswing, HD Hyundai has focused on securing contracts for high-value ships while maintaining financial stability, investing in technological innovation, and diversifying into defense projects.
The company remains at the forefront of green shipping technology, delivering the world’s first methanol-powered container ship, "Laura Maersk," in September 2024, and securing orders for the world’s first ammonia-powered vessels a month later.
Additionally, HD Hyundai has pioneered high-pressure direct injection ammonia dual-fuel engines and is spearheading technology verification for hydrogen carriers, slated for 2026.
Autonomous navigation is another frontier where HD Hyundai is advancing rapidly.
In 2024, its subsidiary, HD Hyundai Samho Heavy Industries, delivered the world’s first vessel equipped with an artificial intelligence-based engineer system for real-time monitoring of critical equipment.
Meanwhile, its navigation technology subsidiary, Avikus, successfully developed an autonomous navigation assistance system for large commercial vessels and achieved a historic autonomous ocean crossing in June 2024.
HD Hyundai's 2024 financial performance has been robust, with orders for 36 vessels securing a stable three-year production pipeline. The company’s emphasis on LNG carriers has been particularly lucrative, driving a fourfold increase in operating profit to 705.2 billion won ($525 million). Affiliate companies HD Hyundai Samho and HD Hyundai Mipo have also bolstered their order books, securing contracts for 43 and 97 vessels, respectively.
Despite its success, HD Hyundai faces challenges, including rising raw material costs and supply chain vulnerabilities.
The price of steel plates, a critical shipbuilding component, doubled in 2022 and remains volatile, pressuring profitability. Additionally, supply chain dependencies on Chinese materials create potential risks amid shifting international trade dynamics. Any downturn at major shipbuilders like HD Hyundai could have cascading effects on smaller suppliers and subcontractors.
Looking ahead, HD Hyundai is expanding its global partnerships, working with Shell on liquid hydrogen carrier development with an eye toward commercialization by 2030.
Its parent company, HD Korea Shipbuilding & Offshore Engineering, is leading research into large liquid hydrogen tanks and cargo management systems, while HD Hyundai focuses on hydrogen engine development and vessel design.
Digital transformation remains a key pillar of HD Hyundai’s strategy.
HD Hyundai Global Service has partnered with Singapore’s Eastern Pacific Shipping to enhance maritime digitalization through AI-driven operational efficiency systems designed to reduce carbon emissions.
The company is also collaborating with Woodside Energy, Hyundai Glovis, and Japan’s MOL on developing liquid hydrogen transportation infrastructure.
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