Cochin Shipyard Limited (CSL) is in the final stage of talks with Korean shipbuilder HD Hyundai Group for the establishment of a $500 million shipbuilding joint venture (JV), a block fabrication facility (BFF) in Kochi.
If talks for the JV go smoothly, it will be the first time that a global shipbuilding giant invests directly into India's state-run maritime facilities. Both partners would contribute equally to the facility, a Mint report said.
According to CSL Finance Director and CMD (Additional Charge), Jose V.J., a team from the Kochi-based shipyard is expected to visit South Korea later this month to finalise the 50:50 deal with HD Korea Shipbuilding and Offshore Engineering (HD KSOE)—part of the HD Hyundai Group.
He added that the Korean side had already conducted site visits and preliminary inspections earlier.
“We are expecting an agreement with HD Hyundai Group in the second half of 2026 to set up a joint venture that would invest close to Rs 4,500-5,000 crore initially to set up a ship block fabrication facility near CSL’s existing shipbuilding facility that also includes a 310-metre dry dock in Kochi,” he declared, as per the report.
Block fabrication facilities manufacture steel blocks—a vital component in shipbuilding used to make sections of a vessel's hull, which are later assembled in dry docks.
The joint venture BFF is expected to be set up on about 80 acres of land leased to CSL by the Cochin Port Trust. Boasting an estimated annual capacity of 120,000 metric tonnes, the facility is expected to generate around 2,000 direct jobs and a number of indirect jobs across the MSMEs, logistics, supply chain, and ancillary industries.
In that regard, the JV would utilise HD Hyundai's design capabilities, advanced manufacturing processes, and industry access, with CSL's 2024-commissioned 310-metre dry dock set to benefit the most from the increased in-house block production.
Notably, this also comes just months after the Kerala-based shipbuilder signed a Memorandum of Understanding (MoU) with HD KSOE in September 2025 for the BFF, after a July 2025 MoU for long-term strategic collaboration in shipbuilding.
At the time of the MoU signing, the BFF was expected to have a production rate of 1,20,000 metric tonnes (MT) per annum, which would be a huge jump in comparison to CSL's existing plant, in which steel blocks can be produced at a rate of 20,000 MT per annum.
The September 2025 MoU was also aimed at exploring opportunities in new business areas, greenfield shipyards, and skill development.
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