South Korea's Gunsan Shipyard is poised to resume full vessel construction after roughly nine years of inactivity.

The yard will embark on a new chapter under the name "J Ocean Heavy Industries." The company plans to officially commence shipbuilding operations in 2027 after completing commemorative equipment refurbishments, with the first newbuilding scheduled for delivery in 2028.

Eco Prime Marine Pacific, the largest shareholder of HJ Heavy Industries, signed an asset transfer agreement on June 26 through its newly established entity, J Ocean Heavy Industries, formally acquiring Gunsan Shipyard along with all associated assets, including its technical training centre and dormitories. Post-acquisition handover procedures are currently underway.

According to a disclosure by J Ocean Heavy Industries on June 29, the company has successfully signed a Letter of Intent with an owner based in the Oceania region for the construction of four 114,000 dwt crude and product oil tankers.

Records show that Gunsan Shipyard, located within the Gunsan National Industrial Complex in North Jeolla Province, covers an area of 1.8 million square metres. It was originally built by HD Hyundai Heavy Industries in March 2010 at an investment of KRW 1.2 trillion. The yard boasts first-class facilities including a 700-metre-class dry dock, a 1,650-tonne gantry crane, and a 1.4-kilometre quay wall. However, after delivering its last vessel—a 114,000 dwt product tanker—in July 2017, the shipyard had not secured a single newbuilding order and was subsequently operated only partially by HD Hyundai Heavy Industries as a production base for ship blocks and components. Although block production resumed in 2023, full vessel construction never materialised.

The signing of this LOI indicates that the company has already secured its first orders before the acquisition process has even concluded, demonstrating its determination and execution capability in rapidly reactivating the yard.

It is reported that inquiries from multiple global shipowners continue to flow in. A representative of J Ocean Heavy Industries stated: "Since Eco Prime Marine Pacific signed the Memorandum of Understanding with HD Hyundai Heavy Industries in March this year, construction inquiries from shipowners have been arriving in succession." The representative further revealed: "Gunsan Shipyard currently holds no vessel orderbook, ensuring rapid delivery, and it possesses the capability to build ultra-large vessels, which is why it has drawn significant attention from global shipping companies."

The vessels covered by the LOI will be based on a next-generation design independently developed by HJ Heavy Industries. The design combines environmental performance with economic efficiency; it is capable of carrying not only crude oil but also multiple petroleum products, allowing operational flexibility in response to market conditions and cargo demand, and possesses strong market adaptability.

Should this LOI be successfully converted into formal construction contracts, it is expected to have a positive ripple effect on the regional economy. Once shipbuilding work is in full swing, it will not only generate direct and indirect employment but also boost utilisation rates at local equipment suppliers and partner companies, with the potential for the regional shipbuilding ecosystem to recover to pre-suspension levels.

A representative of J Ocean Heavy Industries remarked: "Thanks to the longstanding trust and support of Gunsan citizens and residents of North Jeolla for the revival of Gunsan Shipyard, we are once again able to set sail with full vessel construction." The representative added: "We will develop Gunsan Shipyard into a core global production base for eco-friendly vessels, contributing to regional economic development and the resurgence of the Republic of Korea's shipbuilding industry."