HD Hyundai, Eco Prime Sign MOA to Activate Gunsan Shipyard for 3-Year Blocks
HD Hyundai Heavy Industries (HDH) and Eco Prime Marine Pacific have signed a memorandum of agreement to transfer assets at HDH’s Gunsan Shipyard, with final terms to follow a due-diligence review. The arrangement aims to activate the Gunsan yard by positioning it for future shipbuilding work, including a three-year period of HDH block manufacturing orders.
The Gunsan Shipyard is located in the Gunsan National Industrial Complex in North Jeolla Province. Built in 2010, the facility covers about 1.8 million square meters and was one of Korea’s major shipyards. It suspended operations in 2017 during a downturn in the shipbuilding market and was reactivated in October 2022, currently producing around 100,000 tons of block units annually.
Under the MOA, HDH will place its block production orders with the Gunsan yard for three years, while providing associated support such as top-tier design services, raw-material procurement coordination, and automation and smart-shipyard technology assistance. The move is intended to bolster Gunsan’s activity and potentially enable broader new-build work at the site after the asset transfer.
An HDH official said the asset transfer could pave the way for new ship construction at Gunsan, and that HDH would continue to receive a similar volume of block supply after the transfer. The statement highlighted potential benefits for HDH, Eco Prime Marine Pacific, and the city of Gunsan through sustained collaboration and economic momentum.
Gunsan Shipyard boasts Korea’s largest 700-meter dry dock, a 1,650-ton Goliath crane, and a 1.4-kilometer quay, underscoring its capability to handle large vessels and complex projects. These facilities are central to the yard’s potential to undertake sizable new-builds if the asset transfer proceeds to completion.
Eco Prime Marine Pacific, the majority shareholder in HDH, plans to operate Gunsan in tandem with HJ Heavy Industries to develop into a global shipbuilding group. The strategic partnership signals a shift in ownership and operating model for the yard, with wider implications for Korea’s shipbuilding ecosystem and related industries.
Why this matters for U.S. readers: HD Hyundai Heavy Industries is a leading globally integrated shipbuilder with major interests in container ships, LNG carriers, offshore platforms, and related technologies. A stabilized, expanded Gunsan capability could influence international shipbuilding timelines, the supply of large blocks and components, and competition among top shipyards. For U.S. shipping and energy sectors, any shift in global supply capacity, lead times, or pricing in large-scale shipbuilding and modular construction can affect procurement strategies, project schedules, and the resilience of critical supply chains. The development also reflects ongoing investment and consolidation in Korea’s industrial base, with potential spillovers for technology transfer and regional industrial policy affecting markets and partnerships beyond Korea.