HD Hyundai Mipo will merge with HD Hyundai Heavy Industries in December, aiming to boost competitiveness in naval shipbuilding, reported Seoul's Maeil Business News.

The merger, approved by the Korea Fair Trade Commission and backed by the governance advisory committee, will consolidate two Ulsan-based yards under HD Korea Shipbuilding & Offshore Engineering.

Post-merger, HD Hyundai Mipo's four dry docks will be reallocated, with some facilities designated for special-purpose and naval vessels, while others will continue producing commercial ships.

The move aligns with the upcoming "Make American Shipbuilding Great Again" initiative, as the integrated HD HHI seeks to strengthen its defence sector capabilities through restructuring.

HD Hyundai Mipo recently secured a US$159 million contract to build three feeder containerships for an unnamed Oceanian firm. The order includes two 2,800 TEU vessels and one 1,800 TEU ship, all due by October 2027.

The company has booked 21 feeder vessel orders in 2025, up from six in 2024. It attributes the surge to its new hull design that improves propulsion efficiency and cuts fuel use by up to 20 per cent.

Clarksons forecasts the feeder containership market will reach US$2.7 billion this year and grow to US$6.3 billion by 2035, driven by ageing fleets and rising shortsea shipping demand in Asia and Europe.

HD Hyundai Mipo said it continues to receive inquiries from shipping firms focused on eco-friendly technologies and dependable delivery. It plans to expand into new segments, including ice-breaking vessels.