HD KSOE buys Doosan Vina for $207.5 mn in green ship push

HD Korea Shipbuilding & Offshore Engineering Co. (HD KSOE) agreed to buy a full stake in Doosan Vina, the Vietnamese unit of Doosan Enerbility Co., for 290 billion won ($207.5 million) as the South Korean shipbuilding giant ramps up production of eco-friendly vessels.

The deal gives HD KSOE control of Doosan Vina’s 1 million-square-meter industrial complex in Vietnam’s Dung Quat Economic Zone in Quang Ngai Province.

Founded in 2006, the facility makes coal thermal power plant boilers, port cranes, equipment for desalination plants and modules for liquefied natural gas projects, which have been mainly exported to customers in Southeast Asia and the Middle East.

It operates its own port.

In 2024, the unit generated 457.3 billion won in revenue and 31.6 billion won in operating profit.

ASIA HUB FOR CARGO TANKS AND PORT CRANES

HD KSOE, also an intermediate shipbuilding holding firm under HD Hyundai Co., plans to turn the complex into a regional hub for independent cargo tanks and port cranes in Asia.

The self-supporting tanks, used to transport LNG and special gases, like liquified petroleum gas (LPG), ammonia and hydrogen, are expected to see stronger demand under tighter International Maritime Organization rules on marine pollution.

“With our expanded capacity to produce eco-friendly equipment, we will broaden our lineup of globally competitive green vessels and work to maximize profitability,” an HD KSOE official said.

HD KSOE posted 953.6 billion won in operating profit on a consolidated basis on sales of 7.43 trillion won in the second quarter ended in June.

It controls the world’s largest shipbuilder, HD Hyundai Heavy Industries Co., along with several shipbuilding, engine and energy units.

FOCUS ON SMR

For Doosan Enerbility, Korea’s top gas turbine maker, the divestment marks a pivot away from coal boiler production, a business in decline as environmental rules tighten worldwide.

The company plans to reinvest the proceeds from the latest sale into the development of small modular reactors and other clean energy technologies as it deepens its bet on green power.

Write to Jin-Won Kim at jin1@hankyung.com
Sookyung Seo edited this article.