“Not Just Hanwha and Samsung?" HD Hyundai Heavy to Shake Up Icebreaker Market with Mipo Merger

[Korea Financial Times, Shin Haeju] HD Hyundai Heavy Industries (HD HHI), the only one among Korea’s “Big Three” shipbuilders with no icebreaker construction record, is seeking its first icebreaker order through a merger with HD Hyundai Mipo (HD HMD).

Through this integrated entity, HD HHI plans to expand its opportunities in the growing icebreaker market, aligning with the increasing focus on Arctic sovereignty. This strategic move combines HD HHI's icebreaker construction technology with HD HMD's production capabilities. Two of HD HMD's four docks will be dedicated to building special purpose vessels, including icebreakers, and defense products like warships.

In 2011, HD HHI successfully completed the final hull performance verification for a 190,000-ton ice-breaking merchant vessel at the Canadian IOT Research Centre's ice tank.
The vessel developed by HD HHI at the time was the world's largest ice-breaking merchant vessel, designed to break through 1.7-meter-thick Canadian sea ice in the most extreme Arctic regions and operate at a speed of 11 kilometers per hour. However, the project did not proceed to actual construction.

HD HHI intends to transfer this advanced technology to HD HMD. By building icebreakers at HD HMD's docks, which specialize in medium-sized vessel construction, the company aims to achieve 1 trillion Korean Won (approximately USD 720 million) in sales from special purpose vessels alone by 2035.

During a recent conference call, an HD HHI official stated, "The rapidly growing special purpose vessel market, including icebreakers, primarily evaluates a shipyard's construction track record as a key factor during ordering."

The official further explained, "By integrating the special purpose vessel construction track records of HD HHI and HD HMD, we will expand our entry opportunities into the fast-growing icebreaker market and other special purpose vessel markets, such as those for offshore wind turbine installation vessels (WITV), maximizing our market share." It was also emphasized that research and development capabilities are considered part of the track record.


Domestically, Hanwha Ocean and Samsung Heavy Industries have prior experience in building icebreakers. Hanwha Ocean holds the record for constructing the highest number of ice-breaking liquefied natural gas (LNG) carriers worldwide. In July, it was also selected as the preferred bidder for the Ministry of Oceans and Fisheries' next-generation ice-breaking research vessel construction project.

Samsung Heavy Industries secured its first order for a bi-directional icebreaker in 2005. From 2020 to 2021, SHI received orders for 10 ice-breaking LNG carriers from Russia's Zvezda. However, due to the prolonged Russia-Ukraine war, Zvezda notified SHI of contract termination, and SHI is currently pursuing a lawsuit for damages.

The icebreaker market is showing a strong growth trend. According to market research firm Business Research Insights, the global icebreaker market is projected to grow from USD 1.9 billion in 2025 to USD 3.1 billion by 2034.

Demand for icebreakers is also increasing in the United States, driven by the Trump administration's Alaska LNG development project and the opening of the Arctic Sea route.
The U.S. Coast Guard announced in August 2023 that it would need 8 to 9 icebreakers in the future. In February, former President Donald Trump stated that 40 icebreakers should be ordered for Arctic route utilization, military purposes, and energy and resource security.

According to a report titled "Analysis of U.S. Shipbuilding Industry and Implications for Korea-U.S. Cooperation" by Professor Ryu Min-chul of Korea Maritime & Ocean University, 10 icebreakers are expected to be ordered in the potential U.S. newbuild market by 2037.

Professor Ryu explained, "If shipping between Europe and the U.S. West Coast via the Arctic Sea route increases, there is a possibility of additional orders for icebreakers and ice-strengthened merchant vessels."

Shin Haeju (hjs0509@fntimes.com)