HD Hyundai Heavy wins Swedish icebreaker contract

mage: HD Hyundai Heavy Industries

In a first for a Korean shipyard, HD Hyundai Heavy Industries has booked an export order for an icebreaker. It has signed a $349 million contract with the Swedish Maritime Administration covering construction of a 126-meter Polar Class 4 icebreaker. Scheduled for delivery in 2029, it will perform icebreaking support, fleet operation support, towing operations, and ice management tasks in the Swedish Baltic Sea.

HD Hyundai Heavy says that its bid “received consistently high evaluations across the board, including price competitiveness, delivery time, and technological capabilities.” It says describes the contract win as “an achievement accomplished through a public-private partnership facilitated by the active support of the Embassy of the Republic of Korea in Sweden and the KOTRA Stockholm Office.”

According to a report in Defence Nordic, the second place bid from Helsinki Shipyard came in at about EUR 11 million more. Helsinki Shipyard appealed the award, arguing that Hyundai’s bid would not have been the lowest had EU funding not been applied to the project.

That appeal did not succeed and Helsinki Shipyard commented:

“We acknowledge Swedish Court of Appeals’ ruling that the Swedish Maritime Administration’s decision stands to choose Hyundai Heavy Industries (HHI) to construct Sweden’s next icebreaker.

“Although we are deeply disappointed to have not been selected, we remain confident in our ability to compete in upcoming procurements. The current appeal process has reinforced our understanding that Helsinki Shipyard has the industry’s most extensive and high-quality icebreaker references, the most advanced concept designs, fastest and on-time delivery, and cost-effective way of working.

“We also remain fully committed to ensuring that the Finnish maritime cluster remains at the forefront of the global Arctic shipbuilding industry.”

SOARING ICEBREAKER DEMAND

Those who have been following our coverage of the ICE Pact and U.S. Coast Guard efforts to expand its icebreaker fleet know that demand for icebreakers is soaring. Hyundai Heavy wants a piece of that pie, saying that, “based on its proven icebreaker construction capabilities,” it aims to actively enter the global market for warships and special-purpose vessels requiring icebreaking functions.

Joo Won-ho, president of HD Hyundai Heavy Industries (Head of Warship and Medium-sized Vessel Business), stated, “This icebreaker order signifies that the increased business capabilities resulting from the merger of HD Hyundai Heavy Industries and HD Hyundai Mipo have been recognized in the global market,” adding, “We will expand into new export markets in the special-purpose vessel sector based on our technological prowess and business integration capabilities.”