Hyundai Heavy Industries (HHI) announced a blueprint to usher in a paradigm shift in the global shipbuilding industry in the run-up to its planned initial public offering (IPO).

At an online investor conference held on Thursday, September 2, HHI unveiled its vision of "becoming a first mover for eco-friendly ships and creating a super gap to build an unassailable advantage over competitors through preemptive investments."

HHI identified developing eco-friendly and digitalized vessels, constructing smart shipyards and investing in offshore hydrogen infrastructure as three key businesses to realize this vision, and detailed action plans and post-IPO plans were also shared.

Of the KRW 1.08 trillion funds that HHI aims to raise through IPO, about KRW 760 billion will be used for preemptive investments in state-of-the-art technologies that will equip the company with a "super gap" competitiveness to achieve the vision.

Broken down, KRW 310 billion will be spent on the development of eco-friendly and digitalized vessels; KRW 320 billion on the construction of smart shipyards; and KRW 130 billion on the hydrogen infrastructure.

As for eco-friendly vessels, efforts will be focused on the development of ships fueled by hydrogen and ammonia, electric propulsion systems and storage tanks for gas carriers to maximize the profitability of high value-added ships. As for digitalized vessels, efforts to tap into the market for autonomous ships, poised for a rapid growth, will be accelerated through the advancement of its technological capabilities, such as a digital twin technology.

In addition, by building smart shipyards combining shipbuilding and information technologies by 2030,
HHI will ensure an efficient construction system and a safe working environment.

Also planned is expanding investments in green hydrogen production and hydrogen transportation infrastructure to gain a foothold in the marine hydrogen infrastructure market ahead of its competitors by fully utilizing HHI's industry-leading technological prowess in shipbuilding and offshore engineering.

"We will serve as a trailblazer of the global shipbuilding industry's paradigm shift by leveraging our market-leading expertise in the fields of shipbuilding and engine construction," said Han Young-seuk, CEO and president of HHI. "Next year marks our 50th anniversary. With heavy investments in eco-friendly technologies of the future, we are committed to making consistent endeavors to further strengthen our position as the world's No. 1 shipbuilder over the next 50 years as well."

Through the IPO, HHI plans to issue 18 million new shares, which would account for 20% of HHI's total share capital.

Currently, HHI is wholly owned by Korea Shipbuilding & Offshore Engineering (KSOE), the intermediate holding company for HHI Group's shipbuilding operations.

The exact share price will be determined on September 6 after capturing institutional investors' demand through a book-building process on September 2 and 3. This will be followed by a two-day retail tranche on September 7 and 8, before the planned debut on the KOSPI market on September 16, which the main board of Korea Exchange (KRX).