Cochin Shipyard, Korea’s KSOE Sign MoU for ₹3,700 Crore Shipbuilding Expansion

24 Sep 2025 , 09:49 AM

Cochin Shipyard Ltd. (CSL) has entered into a strategic partnership with HD Korea Shipbuilding and Offshore Engineering (KSOE) to strengthen cooperation in the shipbuilding sector, the Ministry of Ports, Shipping and Waterways announced on Tuesday.

The agreement was signed on September 20 during the ‘Samudra se Samriddhi’ event in Bhavnagar, Gujarat, which was inaugurated by Prime Minister Narendra Modi.

According to the ministry, the tie-up is designed to bring together CSL’s infrastructure and domestic shipbuilding experience with KSOE’s advanced technology and international expertise.

CSL’s upcoming 310-metre dry dock will play a central role in the collaboration and will be used to construct large vessels such as Suezmax tankers, container ships, and Capesize bulk carriers. The facility has the capacity to handle up to six vessels every year.

To support these operations, CSL is setting up a block fabrication facility in Kochi spread over 80 acres. The plant will have a production capacity of 1.2 lakh metric tonnes annually, backed by an investment of around ₹3,700 crore. The project is expected to generate close to 2,000 direct jobs in addition to significant indirect employment.

During the transition phase, the two companies will work jointly on projects at CSL’s existing facilities. They also plan to explore greenfield shipyards, skill development programmes, and new business areas together.

CSL also signed an MoU with the Tamil Nadu government at the Bhavnagar event. As part of this agreement, the company is considering a greenfield investment of about ₹15,000 crore to set up a shipyard in Tamil Nadu with a Korean partner.

In its initial phase, the Tamil Nadu facility is expected to create nearly 10,000 jobs and could include a modern ship repair unit. With these announcements, CSL joins its peer Garden Reach Shipbuilders and Engineers (GRSE), which has also recently signed several MoUs, signalling renewed activity in India’s shipbuilding industry.

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