Chennai: HD Hyundai, South Korea's leading shipbuilding conglomerate, has announced the signing of a preliminary agreement with the government of Tamil Nadu, India, to establish a new shipyard. This decision comes after the central Indian government proposed five potential states, including Tamil Nadu, Gujarat, and Andhra Pradesh, for the development of the shipyard.

According to Yonhap News Agency, HD Hyundai selected Tamil Nadu as the optimal location for the new shipyard, citing a company spokesperson. The Tamil Nadu government, prioritizing the establishment of a shipyard to boost the local economy, has chosen HD Hyundai as its project partner. The government plans to offer various incentives and subsidies to support the project's development.

HD Hyundai has identified the Thoothukudi region in Tamil Nadu as the preferred site for the shipyard due to its climate, which closely resembles that of Ulsan, the South Korean port city where HD Hyundai's existing shipyards are located. The region's climate, including temperature and rainfall patterns, was a significant factor in the decision-making process.

The choice of Tamil Nadu is further supported by the presence of major Korean companies such as Hyundai Motor Co. and Samsung Electronics Co. in the state. Additionally, there are ongoing large-scale investments in nearby port facilities, which enhance the prospects for future business expansion in the area.

An official from HD Hyundai expressed optimism about the partnership, stating, "India is a market with strong growth potential, supported by the government's firm commitment to nurturing the shipbuilding industry. We will continue expanding cooperation with India in the shipbuilding and offshore sectors and foster it as a new growth engine."

The Indian government is actively promoting its "Maritime Amrit Kaal Vision 2047," which aims to position the nation among the top five shipbuilding and shipping countries globally, further aligning with the objectives of this collaboration.