en.Wedoany.com Reported - South Korea's HD Hyundai Heavy Industries signed a formal contract with J Ocean Heavy Industries on the 26th for the asset transfer of the Gunsan Shipyard, which has been largely idle since 2017, paving the way for its full-scale resumption of operations.
The signing ceremony was held at the main building of the Gunsan Shipyard in the Second National Industrial Complex in Gunsan, North Jeolla Province. Attendees included J Ocean Heavy Industries representative Ha Hwa-jeong (하화정), HD Hyundai Heavy Industries representative Kim Seok-ho (금석호), Minister of Land, Infrastructure and Transport Kim Yoon-deok (김윤덕), Governor-elect of North Jeolla Province Lee Won-taek (이원택), and lawmakers Kim Eui-kyum (김의겸) and Park Hee-seung (박희승). Representatives from all parties jointly celebrated the new beginning for the Gunsan Shipyard and pledged to develop it into a cutting-edge shipbuilding base.
The Gunsan Shipyard completely halted operations in 2017 due to the shipbuilding industry downturn, order shortages, and corporate restructuring, and partially resumed operations in 2023. This signing is the result of on-site due diligence conducted by both parties since April, coming just over three months after the major shareholder of HJ Heavy Industries, Eco Prime Marine Pacific, signed a memorandum of understanding with HD Hyundai Heavy Industries for the asset transfer.
J Ocean Heavy Industries is a new legal entity established by Eco Prime Marine Pacific, specifically dedicated to operating the Gunsan Shipyard. Under the contract, J Ocean Heavy Industries will pay the acquisition price to HD Hyundai Heavy Industries within the year and complete the ownership transfer registration procedures.
During the transition period, HD Hyundai Heavy Industries will continue to produce ship blocks at the Gunsan Shipyard in accordance with the committed order volume, and will provide world-class design services, raw material procurement agency, and technical support related to automation and smart shipbuilding. J Ocean Heavy Industries will revamp existing processes, workflows, and equipment, gradually commencing ship construction from 2027, with the goal of building the first vessel in 2028.
The North Jeolla Province government plans to leverage this formal contract as an opportunity to cultivate the Gunsan Shipyard into a complete shipbuilding base, and to work with the central government to establish it as a core of "K-Shipbuilding." A provincial government official stated that the Gunsan Shipyard has thus taken the first step in its transformation from a block production base to a shipyard that directly builds ships. Going forward, it will closely cooperate with J Ocean Heavy Industries to promote its early return to normal operations and create quality jobs.
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