---
endpoint: analytics
pattern: Capital Goods
status: done
latency_ms: 251519
conversation_id: 088339d9-5b40-4e3b-8550-b398e96deb80
citations: 7
created: 2026-05-31 18:47:50Z
---

# Who are the key customers and suppliers of HD Hyundai Heavy?

# HD Hyundai Heavy Industries (329180 KS) — Key Customers and Suppliers

HD Hyundai Heavy (HD HHI) is the flagship operating subsidiary of HD Korea Shipbuilding & Offshore Engineering (HD KSOE, 009540 KS), which owns 75.0% of HD HHI; the National Pension Service holds another 6.6% [11]. HD HHI's customer/supplier ecosystem spans four distinct businesses — commercial shipbuilding, naval/defense, offshore plant, and the captive Engine & Machinery Division (EMD).

---

## 1. Key Customers

### A. Commercial Shipbuilding — Global Liner & Tanker Operators

HD HHI's commercial customer base is concentrated in the world's largest container line operators, who are now actively diverting orders away from Chinese yards due to USTR port fees [9]. The top global containership operators (all current/prospective HD HHI clients) are:

| Operator | Country | Owned fleet (TEU) | On-order (TEU) |
| --- | --- | --- | --- |
| MSC | Switzerland | 3,237,820 | 1,793,100 |
| COSCO Shipping | China | 2,548,582 | 736,768 |
| Maersk | Denmark | 2,510,177 | 486,300 |
| CMA CGM | France | 2,189,704 | 1,171,782 |
| Hapag-Lloyd | Germany | 1,290,721 | 382,500 |
| Evergreen | Taiwan | 1,138,709 | 541,682 |
| ONE | Japan | 868,969 | 638,640 |
| HMM | Korea | 789,212 | 77,780 |
| Wan Hai Lines | Taiwan | 608,816 | 209,139 |
| Yang Ming | Taiwan | 258,084 | 77,500 |

Source: CLSA, Clarksons [4]

- **Maersk** is named explicitly on HD HHI's Q1 2025 call as the customer for methanol dual-fuel containerships ordered in 2022–23, which are now flowing through the P&L [13].
- Excluding COSCO, CLSA estimates **80 Chinese-built containerships ordered in the last 0-6 months and up to 127 in the last 0-12 months could be up for transfer** to Korean shipyards as USTR port fees discourage Chinese-built vessels [5].

### B. LNG Carriers — Energy Majors & National Oil Companies

LNG carrier orders are the dominant high-margin segment, with **demand concentrated in Qatar (QatarEnergy) and US LNG terminal sponsors** [1]. Management confirmed that "Korean shipyards have already secured significant slots for 2028, including Qatar and potentially Mozambique" [17].

Although Samsung Heavy is the named FLNG counterparty in the table below, this is the customer set the Korean LNG-related ecosystem (including HD HHI as one of three head-to-head LNGC builders) faces — Shell, Petronas, Eni, Cedar LNG, Delfin, New Fortress, YPF, NNPC, Kosmos Energy [10]:

| FLNG/LNG Project | Operator/Owner |
| --- | --- |
| Prelude FLNG | Shell PLC |
| PFLNG Dua / N/B Geoje 2661 | Petronas Carigali |
| Coral Sul / Coral South 2 FLNG | Eni |
| Cedar LNG (B.C.) | Cedar LNG |
| Port Delfin 1 (US) | Delfin |
| Altamira Fast FLNG 2 | New Fortress Energy |
| Vaca Muerta FLNG 1/2 | YPF |
| Niger Delta FLNG | NNPC |
| Tortue West Ahmeyim 3/4 | Kosmos Energy |

[12]

### C. Naval / Defense — Republic of Korea Navy + Foreign Navies

- **Republic of Korea Navy** is HD HHI's anchor naval customer. CLSA notes "HD HHI and Hanwha Ocean supply the vast majority of ships - of all sizes and purposes - to the Korean Navy, their most important customer," with HD HHI having manufactured 32 of 73 major ships in service (44% share) [3]. Current Korean Navy construction backlog for HD HHI includes **KDX-III Batch-II (2 destroyers under construction)** and 1 vessel in the FFX Batch-III frigate program [2].
- **Philippines Navy** — HD HHI has delivered 2 patrol ships and has 6 frigates under construction, plus an Aegis Destroyer near completion in Q4 2025 [14].
- **Peruvian Navy** — Co-production deal for 4 ships with technical/material supply rights (₩646m order), with a 15-year right-of-first-refusal on additional Peruvian frigate and amphibious assault ship orders [Peru LCU project also under construction] — viewed by management as the template for breaking into the US market via Philly Shipyard.
- **Other naval export targets / "Team Korea" pipeline** — Philippines, Peru, Poland (2,300-ton submarine bid), Australia (Ulsan-class Batch-III bid), and the Canadian submarine program [19].
- **US Navy** — emerging customer in the early innings; the bull case rests on opening MRO (maintenance/repair/overhaul) and surface vessel newbuild slots to allied shipyards. CLSA notes "Hanwha Ocean leads in terms of relationship-building with the US Navy and overall presence in the theme versus HD HHI. Although Hanwha Ocean is capable of winning surface vessel orders, we reiterate our belief that HD HHI will secure a significant volume as well, given their stronger track record and greater building capacity" [10].

### D. Offshore Plant Customers (FPSO, fixed platforms)

- **QatarEnergy** — HD HHI won a **USD 1.14bn Ruya platform contract from a Qatari NOC in January 2024** [16].
- **Petrobras** — HD HHI built the P78 FPSO topside at Ulsan (departed Ulsan January 2024 for topside module installation at a partner yard in Singapore) [15].
- **Pemex / Trion JV** — HD HHI is delivering the Trion FPU offshore Mexico [15].
- **US GoM operator (Shenandoah FPO)** — client name held under confidentiality agreement [15].
- **POSCO International** — HD HHI delivered the Shwe platform in Myanmar to POSCO International in April 2024 [15].

### E. Engine & Machinery Division (EMD) — External Engine Customers

HD HHI's EMD is the world's largest marine-engine builder with **16,000 '000 BHP** of capacity and **35-40% global share** [7][12]. CLSA notes that during shipbuilding upcycles, "supply constraints mean HD HHI enjoys greater engine demand, even from clients who would not typically place orders with the firm - mainly Chinese clients who would usually order from domestic builders, but must resort to Korean players due to their limited capacity. The proportion of HD HHI EMD's external revenue has reached up to 77% during the previous upcycle; it stands at 67% for now, with a continued uptrend" [6]. Translation: roughly two-thirds of EMD revenue comes from external (non-captive) shipyards — including Chinese builders during capacity-constrained periods.

### F. Other Shipowner Categories Cited by Management

Per HD HHI's Q3 2024 call, current shipowner partnerships are focused on next-generation fuel vessels: "we have a lot of customers who are looking to build a partnership with us, who are looking to build a long-term relationship with us for their ammonia D/F vessels," with HD HHI holding "over 50% of the global market" in the ammonia/D-F dual-fuel niche [18]. LCO2 carriers (linked to the Northern Lights 2 CCS project) and VLGCs/VLACs are also drawing recurring shipowner inquiries.

---

## 2. Key Suppliers / Group Partners

HD HHI is unusually vertically integrated. Most "supplier" relationships are intra-group rather than third-party.

### A. Internal Group (HD Hyundai Group / HD KSOE structure)

Per CLSA's group structure analysis [8]:

| Entity | Role | Ownership |
| --- | --- | --- |
| HD Hyundai (267250 KS) | Top holdco | MJ Chung & related parties 37.2% |
| HD KSOE (009540 KS) | Intermediate shipbuilding holdco | HD Hyundai 35.1% |
| **HD HHI (329180 KS)** | Largest shipyard (Ulsan); large LNGC, container, naval, engine producer | HD KSOE 75.0% |
| HD Hyundai Samho HI (HD HSHI) | Group sister shipyard (Yeongam, Jeollanam-do) | HD Hyundai Mipo 96.7% |
| HD Hyundai Mipo (HD HMD, 010620 KS) | Group sister yard (mid-size tankers, LPG) | HD Hyundai Oilbank 42.4% |
| HD Hyundai Marine Engine (HD HME, 071970 KS) | Marine engine subsidiary (ex-STX Heavy) | HD HHI 35.1% via HD Hyundai Marine Solution |
| HD Hyundai Engine | Engine sub | 100% from HD HHI |
| HD Hyundai-Vietnam Shipbuilding | Vietnam yard (mid-size ships) | HD HHI 55.0% |

The captive Engine & Machinery Division (EMD) inside HD HHI itself is the largest marine-engine production unit in the group (16,000 '000 BHP capacity) [7][12]. HD HHI also relies on its in-house engine division to supply roughly 33% of engines internally, with the remaining ~67% sold to external yards [6].

### B. Third-Party Component Suppliers

Per HD HHI's Q4 2025 call, the supplier base is "a very well established supply chain in Korea. We have an integrated production system, which is one of our strengths. Also we have internalized the necessary equipment and pipes as well... In terms of the assembly factory, it won't be that much difficult to expand our capacity in terms of assembly plant operations. As to the equipment as well, because we have a very well-established supply" — i.e., HD HHI sources steel structures, pipes, and key equipment from a domestic vendor base while retaining engine, hull, and outfitting in-house.

**Steel plate** is the dominant input commodity — Q1 2025 commentary discussed lead times for steel-plate price reductions flowing into COGS [13]. Korean steel mills (POSCO and Hyundai Steel being the natural suppliers, given POSCO International's separate role as an HD HHI offshore-plant client [15]) are the primary plate suppliers, though specific supplier breakdown is not disclosed in the documents reviewed.

**Competitor marine-engine suppliers** to other Korean yards (Hanwha Ocean, Samsung Heavy) include Hanwha Engine (formerly Doosan Engine, 14,000 '000 BHP capacity, 8,948 '000 BHP production in 2024) and STX Engine — these are competitors of HD HHI's EMD, not its suppliers [7].

### C. Note on Doosan Group Linkage

Doosan Infracore / Doosan Bobcat entities appear in HD HHI's older corporate filings as group-affiliated overseas entities (China, Norway, India, Brazil, etc.) — these reflect the legacy Hyundai Heavy Industries Holdings era when Doosan Infracore was acquired into the broader HD Hyundai construction-equipment group; they are now under HD Hyundai Infracore (042670 KS) / HD Hyundai Construction Equipment (267270 KS), not HD HHI's shipbuilding operations [8].

---

## 3. Summary Map

| Business Line | Top Customers | Key Suppliers |
| --- | --- | --- |
| Commercial newbuilds — container | MSC, COSCO, Maersk, CMA CGM, Hapag-Lloyd, Evergreen, ONE, HMM, Wan Hai, Yang Ming [4] | Korean steel mills (POSCO, Hyundai Steel); internal pipes/equipment |
| Commercial newbuilds — LNGC/FLNG | QatarEnergy, Shell, Petronas, Eni, Cedar LNG, US LNG terminal sponsors (Delfin, New Fortress), Mozambique LNG [10][12][17] | HD HHI EMD (engines), Korean steel mills |
| Naval | Republic of Korea Navy (primary), Philippines Navy, Peruvian Navy, US Navy (emerging — MRO + newbuilds), Poland/Australia/Canada (bid pipeline) [3][2][14][19] | Korean defense electronics, in-house combat systems integration |
| Offshore plant / FPSO | QatarEnergy (Ruya), Petrobras (P78), Pemex/Trion (FPU), US Gulf operator (Shenandoah, NDA), POSCO International (Shwe) [16][15] | Singapore partner yard for topside integration; internal design |
| Engine & Machinery (EMD) | Chinese shipyards + global commercial yards (external 67% of revenue); captive group yards (HD HSHI, HD HMD, HD-Vietnam) | Internal; license tech from MAN-ES / Wärtsilä (industry-standard) |

---

**Sources**

[1] Korea shipbuilding (Anchors aweigh: Answering the call for US LNG and naval ship demand) — CLSA (2025-05-11) — 607949990LinqAlpha.PDF
[2] Same as [1] — Korean Navy backlog table
[3] Same as [1] — Korean Navy customer commentary
[4] Same as [1] — Global containership operator table
[5] Same as [1] — Chinese-built container orders potentially for transfer
[6] Same as [1] — EMD external customer composition
[7] Same as [1] — Korean marine engine market share
[8] Same as [1] — HD Hyundai Group structure
[9] Same as [1] — USTR port fee customer redirection
[10] Same as [1] — Hanwha Ocean vs. HD HHI US Navy positioning
[11] HD Hyundai Heavy - HC O-PF (Price check) — CLSA (2025-05-21) — 607960163LinqAlpha.PDF
[12] Same as [1] — Marine engine builders capacity table
[13] HD Hyundai Heavy Industries Co., Ltd. — Q1 2025 earnings call
[14] HD Hyundai Heavy Industries Co., Ltd. — Q4 2025 earnings call (Philippines, Peru orders)
[15] HD Hyundai Heavy Industries Co., Ltd. — Q1 2024 earnings call (offshore project portfolio)
[16] HD Hyundai Heavy Industries Co., Ltd. — Q1 2024 earnings call (Qatari NOC Ruya award)
[17] HD Hyundai Heavy Industries Co., Ltd. — Q4 2024 earnings call (Qatar/Mozambique LNGC slots)
[18] HD Hyundai Heavy Industries Co., Ltd. — Q3 2024 earnings call (ammonia D/F shipowner partnerships)
[19] HD Hyundai Heavy Industries Co., Ltd. — Q3 2024 earnings call (Team Korea naval export pipeline)

## Citations

- [13] **Q1 2025 HD Hyundai Heavy Industries Co.,Ltd.** · external
- [14] **HD Hyundai Heavy Industries Co.,Ltd., Q4 2025** · external
- [15] **Q1 2024 HD Hyundai Heavy Industries Co.,Ltd.** · external
- [16] **Q1 2024 HD Hyundai Heavy Industries Co.,Ltd.** · external
- [17] **Q4 2024 HD Hyundai Heavy Industries Co.,Ltd.** · external
- [18] **Q3 2024 HD Hyundai Heavy Industries Co.,Ltd.** · external
- [19] **Q3 2024 HD Hyundai Heavy Industries Co.,Ltd.** · external

