en.Wedoany.com Reported - HD Hyundai's parent company, HD Korea Shipbuilding & Offshore Engineering (HD KSOE), plans to independently build a new shipyard in Thoothukudi, Tamil Nadu, India, with a project investment of approximately $4 billion and an annual production capacity of 3.5 to 4 million gross tons of commercial vessels. The plan has been continuously refined following the signing of a memorandum of understanding between HD Hyundai and the Tamil Nadu government on December 7, 2025.

The shipyard will be wholly developed by HD Hyundai, which also plans to introduce a complete supplier ecosystem to Thoothukudi, including shipbuilding cranes and dedicated steel supply. POSCO is currently in talks to build a steel plant on site. Tamil Nadu's industrial infrastructure agency, SIPCOT, may hold a 10% to 12% equity stake in the project in exchange for land and infrastructure; the Maritime Development Fund (MDF) is expected to hold 20% to 25% of the shares, with HD Hyundai retaining a majority stake.

The total project valuation is approximately $4 billion, while cluster infrastructure such as breakwaters and dredging is expected to require an additional 400 billion Indian rupees. In terms of subsidies, the central government will fund 10% to 12% of the project cost through the Shipbuilding Development Program, the Tamil Nadu government will provide a 25% capital expenditure subsidy, and an additional 10% to 12% contribution for land and infrastructure, bringing total support to 45% to 47% of the project cost.

This is the third major shipbuilding project in Thoothukudi, following memorandums of understanding signed by Cochin Shipyard and Mazagon Dock Shipbuilders worth over 350 billion Indian rupees. However, land acquisition and construction for the aforementioned projects have not yet commenced. HD Hyundai's move underscores its long-term strategy for expansion in India and aligns with India's policy direction to strengthen domestic shipbuilding capabilities.

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