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

The U.S. Navy's supply support ship Amelia Earhart arrived at HJ Heavy Industries' Yeongdo Shipyard for maintenance on June 12. [Photo=HJ Heavy Industries]

HJ Heavy Industries has finalized its acquisition of the Gunsan Shipyard, positioning itself for a leap into the ranks of global top-tier shipbuilders. With the addition of the Gunsan facility, capable of constructing large vessels, alongside its Yeongdo Shipyard in Busan, the company is set to expand its new shipbuilding operations.
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 Industries, which signed an asset transfer and business cooperation agreement with HD Hyundai Heavy Industries. This agreement marks the completion of the acquisition process that began with a memorandum of agreement (MOA) signed in March between Ecoprime Marine Pacific and HD Hyundai Heavy Industries.
The Gunsan Shipyard is one of the largest shipyards in South Korea, featuring a 700-meter dock and a 1,650-ton Goliath crane, making it equipped with some of the country's most advanced shipbuilding infrastructure. It has the capacity to build up to 12 bulk carriers annually, each weighing 180,000 tons.
Once operated by HD Hyundai Heavy Industries, the Gunsan Shipyard played a crucial role in the regional shipbuilding industry. However, it has been largely inactive since 2017 due to the downturn in the shipbuilding sector.
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, the Yeongdo Shipyard is the first shipyard in South Korea, but its limited area of about 80,000 pyeong (approximately 26 hectares) and a dock length of only 300 meters restrict its ability to construct large vessels.
In contrast, the Gunsan Shipyard offers ample space and large docks, optimized for the construction of medium and large ships. While the Yeongdo Shipyard has primarily focused on specialized vessels, the Gunsan facility is expected to become a key production hub capable of expanding into 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, securing a position as a key participant in the U.S.-led MASGA project.

* This article has been translated by AI.