HD Hyundai Selects Thoothukudi in Tamil Nadu for New Shipyard Project

Madurai:

Port Wings News Network:

In a major boost to India’s shipbuilding sector and to Tamil Nadu as an investment destination, South Korea’s HD Hyundai, one of the world’s largest ship manufacturers, plans to build a shipyard in the coastal district of Thoothukudi, a report in the leading business daily The Hindu Business Line has said.

The report added that while there is no official confirmation on the investment from HD Hyundai, sources said it could be over $2 billion.

The initiative was initially referred within HD Hyundai as “SMITH Project” — Shipbuilding Make in India Together with Hyundai — for cooperation with India. “But today, standing here in Tamil Nadu, I believe it is time to say: Shipbuilding ‘Make in Tamil Nadu’ with Hyundai,” said Hannae Choi, Vice President and Head of the Corporate Planning Division at HD Korea Shipbuilding & Offshore Engineering (HD KSOE), a key part of the HD Hyundai group. He was speaking at the Tamil Nadu Investment Conclave – 2025 in Madurai on 7 December.

At the Tamil Nadu Investors Summit in Madurai, a team of HD KSOE officials led by Choi signed an MoU with Guidance Tamil Nadu MD Darez Ahmed, in the presence of Chief Minister MK Stalin.

With this MoU, HD Hyundai will join two Indian majors — Cochin Shipyard and Mazagaon Dock Shipbuilders — that have committed to establish two greenfield commercial shipyards in Thoothukudi, with a combined investment of ₹30,000 crore and are expected to generate employment for 55,000 people.

Speaking at the summit, Choi said this year HD Hyundai reached a historic milestone by delivering a cumulative total of 5,000 vessels since the company’s founding — a record rarely matched in global shipbuilding.

“We also operate shipyards in Vietnam, the Philippines, and Saudi Arabia. And now, we are here in India — a nation full of energy and talent, with limitless potential, a nation rising with confidence and purpose and a nation that has chosen HD Hyundai as a partner. That is why we are here in India,” he said.

On 6 December, Choi visited Thoothukudi along with his team. “With its strategic location, favourable climate, and skilled people, I could clearly imagine a mega shipyard being built here,” he said. “This vision to build a mega-scale shipyard will be made possible together with the Government of India, the Government of Tamil Nadu, and HD Hyundai,” he added.

“We strongly believe India can achieve its Amrit Kaal Vision 2047, and we believe Tamil Nadu can be the place where that vision becomes reality.

A statement from the office of Tamil Nadu Industry Minister TRB Rajaa said that a shipyard will be built in Thoothukudi, which offers climatic and geographic conditions suitable for a world-class shipyard. With strong industry presence and major investments planned in port infrastructure, there is a clear pathway for expansion.

The shipbuilding employment multiplier is high, often cited around 6.4x in India, meaning one direct job supports nearly six total jobs (direct, indirect, and induced). Shipbuilding is labour-intensive and supports numerous ancillary sectors (60-65 per cent of value addition), making it a key driver for industrial growth and technological innovation in regions, the statement said. Tamil Nadu will soon release the proposed Tamil Nadu Maritime Manufacturing Policy, the statement said.