HD Hyundai to Sell Gunsan Shipyard to Eco Prime for VLCCs and MRO
HD Hyundai Heavy Industries plans to sell its Gunsan shipyard in North Jeolla Province to Eco Prime Marine Pacific, a special purpose company formed by Dongbu Construction and Korea Land Trust. The deal is expected to be in the 7,000 to 10,000 billion won range, with the exact price and terms to be set after due diligence. Eco Prime Marine Pacific aims to use the yard for construction of Very Large Crude Carriers (VLCCs) and as a maintenance, repair and overhaul (MRO) hub for the U.S. Navy.
Gunsan, completed in 2010, houses one of the world’s largest dry docks at about 700 meters and a 1,650-ton Goliath crane. HD Hyundai Heavy Industries invested roughly 1.2 trillion won in the facility. After a shutdown during shipbuilding downturn, the yard was reactivated in October 2022 and has since been producing blocks at about 100,000 tons per year.
The yard’s book value was about 665 billion won at the end of 2021. Market observers say the sale price could fall in the 7,000 to 10,000 billion won band, reflecting current demand for large vessels and the global shortage of dry docks during the ongoing supercycle in shipbuilding.
Eco Prime Marine Pacific is controlled by two parties, East Construction and Korea Land Trust, each holding 38.6% of the SPC established to acquire the Gunsan yard.
Beyond VLCCs, the yard could secure orders for LNG carriers and container ships exceeding 20,000 TEU. The plan also envisions using Gunsan as a base for U.S. Navy maintenance and repair operations, a development with implications for the U.S. defense supply chain and allied maritime capacity.
HD Hyundai Group says sale proceeds would fund expansion in the United States, including investments in shipyards and automation. The group has discussed potential U.S. yard acquisitions and joint investments in shipbuilding infrastructure as part of its broader MASGA initiative with Huntington Ingalls Industries, and is developing a roughly $50 billion investment fund with servers Capital to support U.S. shipbuilding activity.
Analysts say the deal could be mutually beneficial: it would revive Gunsan’s underutilized capacity and give HD Hyundai greater access to block production and related services, while expanding Eco Prime Marine Pacific’s ability to bid on high-value vessels. The transaction also highlights how Korea’s shipbuilding sector remains tightly interwoven with global supply chains, defense markets and cross-border investment strategies amid persistent demand for large tonnage ships.
Locally, Gunsan’s workforce expanded after reactivation to about 1,000; in 2016 the yard employed as many as 5,250 people. A full revival of production could bring significant job growth if the yard ramps up new-build activity and related services.