In a landmark move for the South Korean shipbuilding sector, HD Hyundai Heavy Industries (HHI) has successfully implemented a "half-ship" construction methodology to address its mounting orderbook. This innovative approach involves constructing large vessel sections at separate facilities before merging them, marking a significant evolution from traditional block outsourcing.
A Strategic Split in Production
The new production model was recently demonstrated at the HD Hyundai Ulsan shipyard. The project involved the assembly of a 157,000 dwt suezmax tanker. Unlike previous methods where only small blocks were outsourced, this vessel was split into two substantial sections:
- The Stern (102m): Built in-house at Ulsan, this section contains the technically demanding engine room and complex propulsion systems.
- The Bow (168m): Constructed by HSG Sungdong Shipbuilding in Tongyeong. This section was towed 120 km over a 17-hour sea journey to reach the assembly site.
By delegating the space-intensive bow construction to HSG Sungdong, HD Hyundai can utilize its specialized dock space to simultaneously pre-assemble blocks for other high-value projects, effectively increasing the throughput of a single dock.
Addressing Record-Breaking Orderbooks
The shift toward "half-ship" projects is driven by necessity. The combined orderbook for South Korea’s "Big Three" shipbuilders—HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries—surged to $139.16 billion at the end of last year, up from $86.46 billion in 2021.
Given the volatile "boom and bust" history of the maritime industry, major yards are hesitant to invest in permanent new docks. Instead, they are finding creative ways to expand capacity through strategic partnerships. While HD Hyundai is focusing on the "half-ship" split, other competitors like Samsung Heavy are outsourcing entire vessel builds to smaller yards to maintain high order volumes.
A New Life for Smaller Yards
This trend provides a vital lifeline for secondary shipyards like HSG Sungdong. After emerging from court receivership in 2018 and being acquired in 2019, the yard has transitioned from producing simple blocks to taking on significant vessel segments once again. This collaboration creates a symbiotic relationship where major players manage technical complexity and smaller yards provide the essential physical capacity required to meet global demand.
The suezmax tanker currently being joined in Ulsan is expected to undergo final piping and wiring throughout the month, with delivery scheduled for July. As global shipping demand remains robust, this modular approach may become the new standard for the industry's leaders.