1.5 billion yuan! Shipbuilding giant further expands capacity layout for key technologies of environmentally friendly ships

Recently, HD Hyundai Group's shipbuilding business holding company HD Korea Shipbuilding & Offshore announced that it will acquire Doosan Enerbility, a subsidiary of South Korea's Doosan Group (formerly Doosan Heavy Industries), Vietnam branch — Doosan Vina Co., Ltd.

It is reported that HD Korea Shipbuilding & Offshore will sign a Stock Purchase Agreement (SPA) with Doosan Enerbility to acquire 100% of Doosan Vina's shares for about 290 billion KRW (approximately 210 million USD or 1.5 billion CNY).

Doosan Enerbility plans to invest the 290 billion KRW funds obtained from selling Doosan Vina into rapidly growing core businesses such as Small Modular Reactors (SMR) and gas turbines.

According to analysts in the Korean shipbuilding industry, HD Korea Shipbuilding & Offshore's acquisition of Doosan Vina aims to ensure a stable supply chain for core equipment of eco-friendly ships and to expand its Asian port crane business layout.

Doosan Vina was established in 2006 and is located in the Rongju Economic Zone, Quang Ngai Province, central Vietnam. It has been producing thermal power boilers, port cranes, LNG complete equipment modules, and more. In recent years, Doosan Vina has performed well in the Southeast Asian market, securing orders for 26 port cranes in Vietnam, India, and other locations.

HD Korea Shipbuilding & Offshore plans to maintain Doosan Vina's existing business while positioning it as an independent tank manufacturing base and a forward base for port crane business in Asia. Independent tanks are essential equipment for new-generation eco-friendly ships such as LNG-powered ships, LPG carriers, liquid ammonia carriers, liquid hydrogen (LH2) carriers, and liquefied carbon dioxide (LCO2) carriers. With the strengthening of the International Maritime Organization (IMO) environmental regulations, demand is rapidly increasing. After acquiring Doosan Vina, HD Korea Shipbuilding & Offshore is expected to contribute to expanding its eco-friendly ship product lineup.

A representative from HD Korea Shipbuilding & Offshore stated: "This transaction is the result of aligned interests between the two companies and government support. We plan to expand a globally competitive eco-friendly ship lineup to maximize profitability."

It is understood that ships transporting liquefied gases such as liquid ammonia, LPG, and LNG must be equipped with independent tanks separated from the hull to store liquefied gases under low-temperature conditions. Typically, a large gas carrier is equipped with four tanks. Therefore, tank technology is key to achieving large-scale maritime transportation of liquefied gases.

Industry insiders in Korea point out that with the continuous increase in gas carrier orders, a "Big Cycle" for tanks is arriving. In recent years, HD Korea Shipbuilding & Offshore has increased investment in tank technology development and achieved significant results. Its developed welding procedure specification (WPS) for shipboard liquid hydrogen tank manufacturing was approved by DNV Classification Society in December last year; in January this year, the company's vacuum insulation technology for liquid hydrogen tanks received Approval in Principle (AIP) certificates from Lloyd's Register (LR), American Bureau of Shipping (ABS), DNV, and Korean Register (KR).