The shipyard will be built in Thoothukudi, which offers climatic and geographic conditions suitable for a world-class shipyard.
Published Dec 07, 2025 | 12:03 PM ⚊ Updated Dec 07, 2025 | 12:03 PM
HD Hyundai.
Synopsis: Global shipping major HD Hyundai has chosen Tamil Nadu for its massive shipbuilding cluster. The Tamil Nadu government welcomed the decision, stating that this step reflects the confidence that global industry leaders place in Tamil Nadu’s vision, stability and economic strength.
Global shipping major HD Hyundai has chosen Tamil Nadu for its massive shipbuilding cluster, sources said on Sunday, 7 December.
The Tamil Nadu government welcomed the decision by HD Hyundai to move forward with a new shipyard in the state. Industries Minister Dr TRB Rajaa said this step reflects the confidence that global industry leaders place in Tamil Nadu’s vision, stability and economic strength.
The shipyard will be built in Thoothukudi, which offers climatic and geographic conditions suitable for a world-class shipyard. Government sources said that, with strong industry presence and major investments planned in port infrastructure, there is a clear pathway for expansion.
The agreement was signed in the presence of Chief Minister MK Stalin, Rajaa and senior leadership from HD Korea Shipbuilding and Offshore Engineering.
“Tamil Nadu was chosen by HD Hyundai because it offered a clear policy roadmap, fast coordination and a strong coastal ecosystem for a project of this scale. The state identified viable sites early and backed them with talent, infrastructure and incentives. Tamil Nadu provided a dependable and scalable environment for long-term shipyard operations,” said the office of TRB Rajaa in a press release.
According to sources, the shipbuilding industry has a high multiplier in terms of direct to indirect jobs, often cited around 6.4 times in India, meaning one direct job supports nearly six total jobs (direct, indirect, and induced).
Shipbuilding is labour-intensive and supports numerous ancillary sectors — 60-65 percent of value addition — making it a key driver for industrial growth and technological innovation in regions.
The state government said Tamil Nadu has been advancing its maritime ambitions, treating shipyard development as a priority to boost coastal economies, attract investment and build talent.
“Amidst the growing momentum in the shipbuilding sector in India, Tamil Nadu has moved early and decisively. The state government has been working to identify sites that can support long-term operations. Incentives, modern infrastructure and focused policy have created an environment where global companies can grow with confidence. We will soon be releasing the proposed Tamil Nadu Maritime Manufacturing Policy. This is why HD Hyundai has chosen Tamil Nadu as its preferred partner,” said Rajaa.
