South Korea's Hyundai signs pact to build a shipyard in Tamil Nadu

Hyundai, South Korea's leading shipbuilding conglomerate, announced the signing of a preliminary agreement with the southern Indian state of Tamil Nadu. According to the company spokesperson, the Indian government had earlier suggested five candidate states - including Tamil Nadu, Gujarat and Andhra Pradesh -for the project. HD Hyundai selected Thoothukudi, in Tamil Nadu, as the most suitable location for the new shipyard, as the temperature and rainfall patterns are similar to those of Ulsan, the South Korean port city that houses HD Hyundai's shipyards. China, South Korea, and Japan are the world leaders in shipbuilding, owing to their scale, capacity and industrial base, combined with Government backing.

The agreement in this regard was signed in the presence of Tamil Nadu Chief Minister MK Stalin, Industries Minister TRB Rajaa and senior leadership from HD Korea Shipbuilding and Offshore Engineering. However, the quantum of investment or the project implementation roadmap were not made public.
Tamil Nadu is also home to major Korean companies, including Hyundai Motor Co. and Samsung Electronics Co., and large-scale investments are underway for nearby port facilities, further raising expectations for future business expansion, HD Hyundai said. Notably, Tamil Nadu has been advancing its maritime ambitions, treating shipyard development as a priority to boost coastal economies, attract investment and build talent.

According to Tamil Nadu Industries Minister TRB Rajaa, the state was chosen by HD Hyundai because it offered a clear policy roadmap, fast coordination and a strong coastal ecosystem for a project of this scale. The shipbuilding employment multiplier is high, often cited at 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% of value addition), making it a key driver for industrial growth and technological innovation in regions, he added.

"This year, HD Hyundai reached a historic milestone. We delivered a cumulative total of 5,000 vessels since our 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," said Hannae Choi, HS KSOE Senior Vice President, HD Hyundai.

"Yesterday, my team and I visited Thoothukudi. With its strategic location, favourable climate, and skilled people, I could clearly imagine a mega shipyard being built here. 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," said Choi.