HJ Heavy Industries Completes Acquisition of Gunsan Shipyard, Aiming for Global Leadership

The U.S. Navy's supply support vessel, USS Amelia Earhart, arrived at HJ Heavy Industries' Yeongdo Shipyard for maintenance on June 12.

HJ Heavy Industries has finalized the acquisition of the Gunsan Shipyard, positioning itself for growth as a leading global shipbuilder. With the addition of the Gunsan facility, which is capable of constructing large vessels, the company aims to expand its new shipbuilding operations following its existing Yeongdo Shipyard in Busan.

On June 26, industry sources reported that Ecoprime Marine Pacific, the largest shareholder of HJ Heavy Industries, established a special purpose company (SPC) named J-Ocean Heavy Industries, which signed an asset transfer and business cooperation agreement with HD Hyundai Heavy Industries for the Gunsan Shipyard.

This agreement follows a memorandum of agreement (MOA) signed between Ecoprime Marine Pacific and HD Hyundai Heavy Industries in March, marking the completion of the acquisition process. The acquisition cost is approximately 780 billion won (about $600 million).

The Gunsan Shipyard is recognized for its large dry dock and production facilities, featuring a 700-meter dock and a 1,650-ton Goliath crane, making it one of the largest shipbuilding infrastructures in South Korea. It can construct up to 12 bulk carriers annually, based on an 180,000-ton capacity.

Previously operated as HD Hyundai Heavy Industries' Gunsan Shipyard, it served as a key hub for the local shipbuilding industry until operations were halted in 2017 due to a downturn in the sector, leading to a prolonged period of inactivity.

With this acquisition, HJ Heavy Industries plans to enhance its order response capabilities by establishing a production system that leverages both the Yeongdo and Gunsan shipyards.

Founded in 1937, HJ Heavy Industries' Yeongdo Shipyard is the first shipyard in South Korea, but its limited space of about 80,000 pyeong (approximately 26,000 square meters) and a 300-meter dock restrict its ability to build large vessels. In contrast, the Gunsan Shipyard offers ample space and infrastructure optimized for the construction of medium to large ships. While Yeongdo has focused on specialized vessels, Gunsan is expected to become a crucial production hub for commercial shipbuilding.

There are also discussions about utilizing the Gunsan Shipyard as a maintenance, repair, and overhaul (MRO) base for U.S. Navy vessels. Earlier this year, HJ Heavy Industries obtained the necessary qualification for the MRO bidding process and was named a key participant in the U.S.-led MASGA project.

J-Ocean Heavy Industries plans to complete infrastructure upgrades and equipment enhancements, with a goal to gradually commence shipbuilding operations starting in 2027. A representative from J-Ocean Heavy Industries stated, "This acquisition represents a significant turning point that will invigorate the economy of the Jeollabuk-do region, beyond merely securing the shipyard and facilities. We will ensure thorough preparations to facilitate new orders and smooth operations."

* This article has been translated by AI.