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HD Hyundai Heavy Industries aims to build a new shipbuilding base in Morocco

South Korea-based HD Hyundai Heavy Industries plans to build a new production facility in the North African country of Morocco.

HD Hyundai Heavy Industries aims to build a new shipbuilding base in Morocco

In addition to its shipyards, which are already burdened with a three-year order backlog, the company aims to establish a strategic base at the intersection of Africa, Europe and the Americas to strengthen its position in the global shipbuilding market.

According to industry sources, HD Hyundai Heavy Industries is considering participating in the tender for the operating rights of the Casablanca Shipyard, which is being conducted by the Moroccan National Ports Agency. If the contract is won, the company will have the right to use this production area for 30 years. The facility is being built on the Atlantic coast in Casablanca and is expected to be the largest shipyard in Africa with an area of 210,000 square meters. The shipyard will be equipped with advanced infrastructure such as land berths, lifting platforms and jetties.

Morocco, which has limited experience in shipbuilding, has decided to hand over the management of this large-scale facility to an international shipyard operator. The Moroccan government aims to purchase around 100 merchant ships by 2040. HD Hyundai plans to meet this demand through its local production base, while also securing new orders from major European-based maritime companies.

Having already established production bases in Vietnam and the Philippines, the company is also strengthening its cooperation with countries such as the US, India and Peru. The investment in Morocco is part of the HD Hyundai Group's strategy to expand its global production capacities. Considering the high investment costs and potential risks involved in establishing new shipyards, the company prefers to enter markets through operating rights rather than direct ownership.

Although new shipyard investments have the potential to accelerate cash flow by shortening ship delivery times, they can create financial pressures in the long term due to industry cycles. For this reason, HD Hyundai is adopting flexible models such as operating rights to expand its capacity in overseas markets.

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