HD Hyundai to Triple Naval Vessel Construction Capacity, Target U.S. With Unmanned Vessel

All four dry docks in Ulsan to operate at full capacity... KRW 10 trillion naval vessel revenue target
Expand business through overseas construction and engineering technology exports

HD Hyundai plans to increase the naval vessel construction capacity at its Ulsan shipyard by up to threefold and accelerate its push into global defense markets, including the United States. Its strategy is to break into new markets with an unmanned surface vessel jointly developed with U.S. defense company Anduril, while expanding its business through overseas local construction and exports of design and engineering technology.

At a press conference held on November 12 at HD Hyundai Heavy Industries' shipyard in Ulsan, Choi Taebok, Managing Director of HD Hyundai Heavy Industries, discussed plans to generate KRW 10 trillion in naval vessel business revenue. "We plan to add two large dry docks to our existing two, bringing the total to four and operating all of them at full capacity. We will also expand the production capacity of our submarine plant," he said. "Through these measures, we plan to increase our construction capacity in Ulsan by two to three times."

Choi Taebok, executive director of HD Hyundai Heavy Industries, answers reporters' questions at a press briefing held at the company's shipyard in Ulsan on the 12th. HD Hyundai Heavy Industries

Along with expanding its production facilities, HD Hyundai plans to grow its overseas local construction business. It will apply the local naval vessel construction model it is pursuing in Peru to other countries and develop engineering services into a new source of revenue by exporting accumulated expertise in areas such as ship design and production methods.

"People say we export defense products on the basis of cost-effectiveness, but the foundation of that cost-effectiveness is technological capability," Choi said. "Going forward, we will also pursue businesses that generate revenue by exporting engineering technology."

He emphasized that in the global naval vessel market, competitiveness in winning contracts depends not only on price, performance and delivery schedules, but also on how much a company can contribute to the development of local industries. He explained that in major defense projects shaped by military and diplomatic ties, such as Canada's submarine program and Australia's frigate program, price competitiveness alone is not enough to guarantee a contract.

"Most countries seeking to acquire naval vessels want them built in their own country," Choi said. "We have the capabilities to establish local shipyards and transfer technology as well." He added, "In Peru, too, there has been a proposal to broaden the scope of local industrial cooperation in connection with naval vessel construction."

Shane Annett, senior vice president of maritime and maneuver systems at Anduril, answers reporters’ questions at a press briefing held on the 12th at HD Hyundai Heavy Industries’ shipyard in Ulsan. HD Hyundai Heavy Industries

In the U.S. market, the unmanned surface vessel jointly developed with Anduril will serve as a new growth engine. The two companies signed an agreement in November 2025 and subsequently developed a 600-ton unmanned surface vessel (ASV), named Alpha. They held its launch ceremony on November 12.

Unlike traditional defense projects, in which products are developed in response to military requirements, this project begins with companies building prototypes and demonstrating their performance to generate demand.

"In the past, development began when demand emerged in the market. In the age of unmanned systems, companies take the lead by developing the technology and product first and creating a market for them," Choi said. "We expect to step up sales efforts in earnest once testing in the United States is complete."

"Investing our own funds to build a prototype without government support and show it to customers is how Anduril has always operated," said Shane Arnott, Senior Vice President of Maritime and Maneuver Systems at Anduril. "Customers learn alongside us during development, and we build a model that leads to product sales."

The close partnership between the two companies enabled them to develop the unmanned surface vessel in a short period. Kim Hyungtaek, an executive director at HD Hyundai Heavy Industries, recalled, "We faced many challenges in adapting to each other because of differences in culture, working methods and time zones. At times, I wondered whether we were going to end up getting divorced."

Kim Hyungtaek, executive director at HD Korea Shipbuilding & Offshore Engineering, answers questions from reporters during a press conference held at HD Hyundai Heavy Industries' shipyard in Ulsan on the 12th. HD Hyundai Heavy Industries.

He continued, "But we kept communicating toward a common goal and built such a close relationship with our Anduril colleagues that we met them more often than many of our own employees in Korea. Thanks to that, we were able to design and build the vessel in a short time."

Anduril also spoke highly of its partnership with HD Hyundai. Asked why Anduril had chosen HD Hyundai as its partner, Arnott replied, "Because it is the world's best shipbuilder." He added, "HD Hyundai has DNA and a way of thinking similar to ours. Those commonalities enabled us to develop Alpha quickly."

The two companies plan to pursue business in the U.S. market with Anduril leading sales and HD Hyundai supporting the effort. They also intend to work together in markets outside the United States, responding to demand as it arises.

Lee Sangbong, executive vice president of HD Hyundai Heavy Industries, answers reporters' questions at a press conference held at the company's shipyard in Ulsan on the 12th. HD Hyundai Heavy Industries

"We have also gained experience by carrying out local construction projects in Peru," said Lee Sangbong, Executive Vice President of HD Hyundai Heavy Industries. "We believe we have what it takes to build vessels in the United States as well, through design, production methods and technical support."

HD Hyundai plans to complete performance verification of Alpha by the first half of 2027. It will conduct tests related to vessel operations in Korea and verify the vessel's mission capabilities in the United States. The company plans to begin full-scale efforts to secure contracts afterward.

This content was produced with the assistance of AI translation services.