SEOUL, October 23 (AJP) - HD Hyundai Heavy Industries will officially merge with its affiliate HD Hyundai Mipo Dockyard on Dec. 1, following overwhelming shareholder approval on Thursday — a move the company says will sharpen its competitiveness in the global shipbuilding and defense markets.
At the respective shareholder meetings, 98.54 percent of HD Hyundai Heavy Industries’ shareholders and 87.56 percent of HD Hyundai Mipo’s shareholders voted in favor of the merger, including the National Pension Service, one of South Korea’s largest institutional investors.
The two companies first announced their merger plan in August, positioning the combined entity as a leader in defense technology and next-generation shipbuilding. The Fair Trade Commission approved the deal in September, saying it would not restrict market competition.
The merger will consolidate HD Hyundai Heavy Industries’ shipbuilding expertise with HD Hyundai Mipo’s production capacity and workforce, allowing the new entity to strengthen its foothold in the defense and special-purpose vessel markets.
The company also plans to expand its research and development operations to accelerate technological innovation and respond more effectively to tightening environmental regulations.
Executives said the integration would help streamline design and production processes, reduce costs, and improve responsiveness to global demand shifts. The company has set an ambitious target of $27 billion in revenue by 2035, up from an estimated $14 billion in 2024, with roughly $7 billion expected to come from the defense sector.
“Shareholders have recognized the strategic necessity of this merger,” an HD Hyundai Heavy Industries spokesman said. “By combining our strengths, we aim to lead the future of the shipbuilding and defense industries.”
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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