CHENNAI: HD Hyundai has chosen Tamil Nadu, and specifically the Thoothukudi region anchored by VOC Port, for its proposed Indian shipyard, even though an earlier assessment by the union government had identified five states, including Tamil Nadu, Gujarat and Andhra Pradesh, for hosting a global shipbuilding facility.
The South Korean shipbuilding major in a statement said the operating conditions around Thoothukudi closely mirror those of Ulsan — South Korea’s shipbuilding capital — with similar temperature and rainfall patterns, making it well suited for large-scale yard operations.
HD Hyundai also cited the state’s established Korean industrial presence — with companies such as Hyundai Motor and Samsung Electronics already operating in Tamil Nadu — and ongoing investments in port and logistics infrastructure around Thoothukudi as strengthening the long-term business case, besides the strong policy backing from the state and the centre.
The decision was formalised through a preliminary agreement signed on Sunday between HD Korea Shipbuilding and Offshore Engineering, the group’s shipbuilding holding company, and the Tamil Nadu government, in the presence of Chief Minister MK Stalin and Industries Minister TRB Rajaa.
For the state government, the project fits squarely into its strategy to revitalise the southern coastal economy through heavy industry and maritime manufacturing. The state has made shipbuilding a priority sector and plans to extend a package of incentives and subsidies to support the investment.