HSG Sungdong Shipbuilding, once one of the top 10 shipbuilders in the world, has re-entered the finished shipbuilding market, forging a strategic partnership with Samsung Heavy Industries and securing major orders in offshore wind and marine infrastructure.
After years of financial hardship that culminated in court receivership in 2018, the reborn HSG Sungdong — acquired by HSG Heavy Industries late in 2019 — had been operating mainly as a block builder. That has now changed.
This month, Samsung Heavy Industries subcontracted the construction of a full suezmax-class crude oil tanker to HSG Sungdong, elevating their collaboration from component fabrication to full-vessel delivery. The 158,000 dwt vessel, to be completed under Samsung’ Heavys name, marks a milestone in South Korea’s evolving shipyard synergy model, blending the scale of major yards with the flexibility of mid-sized players.
HSG Sungdong is not stopping at tankers. The company has secured a KRW870bn ($630m) offshore production facility order for Africa and continues its diversification into offshore wind. Recent wins include infrastructure work for Taiwan’s Changhua wind farm. A fresh KRW210bn capital injection has significantly improved the company’s balance sheet, allowing it to expand into high-value marine sectors.
With a 1.2m sq m yard and upgraded equipment, the company is now eyeing more complex global offshore projects. A
Between 2004 and 2017, the then-Sungdong Shipbuilding delivered over 250 vessels, including capesize bulkers and MR tankers. Its last delivery was the 179,400 dwt Graceful in 2017.
HSG Sungdong’s return mirrors Samsung Heavy’s broader strategy of engaging partners to cope with rising demand. The firm has similar outsourcing relationships with China’s PaxOcean Zhoushan and Vietnam’s PetroVietnam.
