HD Korea Shipbuilding aims for $18bn orders in 2025 with greener ships and US ties
This year’s target is more than 30% higher than the 2024 goal, but 12% lower than what was achieved last year
Company aims to continuously develop cutting-edge technologies which Chinese competitors cannot match, and to take the opportunity to leverage co-operation with the US
SOUTH Korea’s HD Korea Shipbuilding & Offshore Engineering has shown confidence by raising its annual order target, anticipating continued demand for greener ships and strengthened US co-operation.
HD KSOE set its 2025 annual order target at $18bn, a 33.7% increase from the 2024 target of $13.5bn, but a 12.1% decrease compared to what was actually achieved last year.
Its three shipbuilding subsidiaries, HD Hyundai Heavy, HD Hyundai Mipo and HD Hyundai Samho, are aiming to win new orders worth $9.7bn, $3.8bn and $4.5bn respectively, this year.
“The 2025 order target has been confirmed, taking into account the current market situation, including continuous orders for environmentally friendly vessels,” an HD KSOE official told Lloyd’s List, adding: “As we secure a stable volume of orders, we will maintain our selective order-taking strategy.”
The remarks, however, come as the Export-Import Bank of Korea forecast a decline in newbuilding activity this year.
The global newbuilding volume was expected to drop by 28.8%, from 59m cgt in 2024 to 42m cgt in 2025. The value of orders is also projected to decrease by 21.1%, falling from $175bn to $138bn.
In his new year address, chairman of HD Hyundai Co, HD KSOE’s parent group, Kwon Oh-gap emphasised the importance of innovation to stay ahead of Chinese competitors.
“We have actively responded to the challenges posed by Chinese competitors by maximising synergies in three core areas: technology development, design and manufacturing.
“By optimising these areas, we will continue to produce state-of-the-art ships that China cannot match. At the same time, we must promote strategies to recapture markets that China has taken over,” he said.
He added that HD Hyundai’s global research and development centre in Bundang, Gyeonggi Province, has been nurturing talent in design, development and research, and these efforts will be intensified.
According to data from Clarksons, as of the first 11 months of 2024, Chinese shipyards secured 69% of the year’s new orders in cgt terms, while South Korea captured just 18% — its lowest level since 2016. Apart from gas carriers, Chinese players have achieved a palpable lead in almost all other commercial ship types.
Other challenges facing Kwon’s firm include labour shortage and the transfer of production technology.
He described the anticipated co-operation with the US as a key opportunity amidst these difficulties, urging staff: “We must face these challenges calmly while ensuring we seek real benefits for our company.”
It is anticipated that South Korean yards could benefit from US efforts to curb the dominance of Chinese shipbuilding, with the recently proposed Ships for America Act by lawmakers in Washington. However, the outcome remains to be seen.
