Table of Contents
- A Signal for the Restructuring of Busan Shipbuilding Industry: Halla IMS's Drive to Acquire Yeongdo Shipyard
- Yeongdo Shipyard Reborn as a Hub for MRO (Maintenance, Repair, and Operations)
- Daehsan Shipbuilding in the Final Stages of Restructuring Through the Sale… Focusing on Dadaepo Shipyard
- Industry Outlook – Expectations for Strengthening Busan Ship Technology Cluster
- Frequently Asked Questions (FAQ)
A Signal for the Restructuring of Busan Shipbuilding Industry: Halla IMS's Drive to Acquire Yeongdo Shipyard
The shipbuilding equipment specialist Halla IMS (092460) has been selected as the preferred negotiation partner for the acquisition of Daehsan Shipbuilding's Yeongdo shipyard. This decision is expected to be a significant milestone in the restructuring of Busan's shipbuilding industry.
According to investment banks and the Busan regional industry on the 22nd, the creditor group of Daehsan Shipbuilding (main creditor bank: Export-Import Bank) has notified Halla IMS as the preferred negotiation partner for the sale of the Yeongdo shipyard. Daehsan Shipbuilding has been steadily pursuing the sale of the Yeongdo shipyard since entering a workout in 2023.
If this acquisition negotiation proceeds successfully, it is highly likely that positive changes will occur in Busan's shipbuilding industry.
Yeongdo Shipyard Reborn as a Hub for MRO (Maintenance, Repair, and Operations)
Halla IMS is planning to utilize Yeongdo Shipyard as a center for ship maintenance and operations.
This shipyard is located close to HJ Heavy Industries, providing great connectivity within the shipbuilding industry, but its conversion to commercial real estate is structurally challenging. In this context, Halla IMS aims to leverage existing measurement, gas detection, and integrated safety control technologies to seek a transformation into a 'smart MRO shipyard'.
The company offers measurement and control systems to enhance the safety and efficiency of ships and is also engaged in the ship repair and facility rental business. In 2024, it is expected to record a revenue of 104.2 billion won and an operating profit of 1.59 billion won on a consolidated basis.
Daehsan Shipbuilding in the Final Stages of Restructuring Through the Sale… Focusing on Dadaepo Shipyard
Founded in 1945, Daehsan Shipbuilding has established itself as a mid-sized shipbuilding company in Busan, producing 1,000 TEU container ships, tankers, and special ships. However, in 2023, it recorded a deficit of 160 billion won and entered a workout procedure, leading to a full-scale restructuring.
Recently, it has been restructuring its business to focus on the production of large ship blocks and deckhouses, and after the sale of the Yeongdo shipyard, it plans to concentrate on the operation of Dadaepo Shipyard.
Despite these changes, Daehsan Shipbuilding shows signs of improvement in its performance. Last year's revenue reached 322.5 billion won, and its operating loss decreased to 5.5 billion won, indicating a reduction in its deficit. By the first half of 2025, it is expected to record a revenue of 132 billion won and an operating profit of 2.8 billion won, increasing the possibility of a return to profitability.
Industry Outlook – Expectations for Strengthening Busan Ship Technology Cluster
This acquisition is considered an important turning point as the restructuring of the shipbuilding belt in Yeongdo, Busan, begins. Although the T-shaped land of Yeongdo Shipyard is not easy to develop into commercial land, it is likely to develop into a 'hub for ship repair, parts, and equipment industries' alongside nearby HJ Heavy Industries and Samkang M&T.
With the increasing demand for overseas MRO services, like the U.S. 'MARSH Project', Halla IMS's acquisition is expected to serve as a springboard for entering the global maintenance market. This change is anticipated to positively impact the shipbuilding industry in the future.
The acquisition of Yeongdo Shipyard by Halla IMS is expected to be a crucial opportunity for technological advancement and job recovery in Busan's shipbuilding industry, beyond just a mere asset purchase. If Halla IMS successfully builds a model combining 'smart ship equipment and ship maintenance', Yeongdo is likely to revive as a center of the Korean shipbuilding industry once again.
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Frequently Asked Questions (FAQ)
Q. What is the reason Halla IMS is pursuing the acquisition of Daehsan Shipbuilding Yeongdo Shipyard?
Halla IMS aims to transform the Yeongdo Shipyard into a center for ship maintenance and operations, a smart MRO shipyard, through the acquisition.
Halla IMS is a company with technologies for shipbuilding equipment and vessel safety control, planning to utilize the Yeongdo Shipyard as a hub for ship maintenance, repair, and operations (MRO). They particularly aim to implement a smart shipyard model using measurement, gas detection, and integrated safety control technologies, which can drive technological innovation within the shipbuilding industry and strengthen regional industrial competitiveness.
Q. Why is Daehsan Shipbuilding pursuing the sale of Yeongdo Shipyard and restructuring?
Daehsan Shipbuilding is pursuing the sale of Yeongdo Shipyard and reorganization to overcome the deficit and workout crisis in 2023.
Founded in 1945, Daehsan Shipbuilding entered a workout procedure after recording a deficit of 160 billion won in 2023. Therefore, they are selling the Yeongdo Shipyard to improve their financial structure and are restructuring their business to focus on block and deckhouse production while concentrating on operating Dadaepo Shipyard. Recently, they have shown signs of reducing losses and improving performance, increasing the likelihood of turning a profit.
Q. What impact will Halla IMS's acquisition have on the Busan shipbuilding industry?
The acquisition by Halla IMS is expected to reshape the Busan Yeongdo shipbuilding belt into a hub for maintenance, parts, and equipment industries, while strengthening the ship technology cluster.
Considering the difficulty of converting the Yeongdo Shipyard into commercial real estate, Halla IMS plans to develop it as a center for ship MRO. This will increase the value of the Busan shipbuilding industry cluster alongside nearby HJ Heavy Industries and establish a basis for entering the overseas MRO market, which is expected to have positive effects on the competitiveness of the Busan shipbuilding industry and job creation in the region.
Q. What is the performance and financial outlook for Daehsan Shipbuilding?
Daehsan Shipbuilding is showing signs of decreasing losses and increasing revenues, with a high likelihood of turning a profit in 2025.
Last year, Daehsan Shipbuilding achieved revenue of 322.5 billion won and an operating loss of 5.5 billion won, declining its deficit. In the first half of 2025, it is expected to record revenue of 132 billion won and an operating profit of 2.8 billion won, which points to a potential profitability pivot. This reflects the gradual effects of restructuring and business reorganization.
