Cochin Shipyard joins hands with Korean firm to set up block fabrication plant worth ₹3,700 crore
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Cochin Shipyard Ltd (CSL) will set up a Block Fabrication Facility (BFF) at Kochi, with an investment of about ₹3,700 crore. This comes in the wake of the company signing a Memorandum of Understanding (MoU) with HD Korea Shipbuilding and Offshore Engineering (HD KSOE), an HD Hyundai Heavy Industries’ subsidiary, to strengthen domestic shipbuilding capabilities.
The company also signed a second MoU with Tamil Nadu's investment nodal agency Guidance to develop shipbuilding clusters. As part of this, CSL is considering a greenfield shipyard in the state with an investment of ₹15,000 crore.
The BFF plant in Kochi will spread across 80 acres with an annual capacity of 1.2 lakh metric tonnes, and generate 2,000 direct jobs and over 10,000 indirect jobs across logistics, MSMEs, and allied industries.
While the MoU was already agreed upon in July, the signing of the agreement took place at the Samudra se Samriddhi event for maritime sector held last Saturday in Gujarat. The event was inaugurated by Prime Minister Narendra Modi.
Under the MoU, CSL will utilise its 310-metre dry dock, inaugurated in January last year, to construct large vessels including Suezmax tankers, container ships, and Capesize bulk carriers, with a capacity of up to six vessels annually. The collaboration combines CSL’s infrastructure and local expertise with HD KSOE’s advanced technology and global experience.
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Under this agreement with its Korean counterpart, Cochin Shipyard aims to enhance shipbuilding efficiency, develop next-generation vessels, and build new business opportunities in greenfield yards and skill development.
However, the development has not impacted the shipbuilding company’s performance on the markets today. At the time of writing (14:27), CSL shares were trading at ₹1,886.30, down 1.9% from the previous close on the NSE. The share opened at ₹1,924, marginally up from Monday close of ₹1,922.90, and reached an intraday high of ₹1,925.