South Korea’s largest shipbuilder, HD Hyundai, announced on Tuesday that it has partnered with Indian government-backed companies to build a joint shipyard in India.

According to Yonhap News Agency, HD Hyundai announced that on Monday (local time) in New Delhi, it signed a memorandum of understanding (MOU) with Sagarmala Finance Corporation Ltd. (SMFCL) and NSHIP TN of India to collaborate on the establishment of a joint venture shipbuilding business.

The Sagarmala port infrastructure development project in India is supported by the special-purpose organization NSHIP TN (National Shipbuilding & Heavy Industries Park) Tamil Nadu, which was founded by the port authorities of the nation.

As the largest shareholder, HD Hyundai will take the helm in the joint venture shipbuilding business it will create with the two organizations under the MoU. Ultimately, it will oversee all operations and construct a digital-focused shipyard in India.

The agreement was signed during a bilateral summit between Indian Prime Minister Narendra Modi and South Korean President Lee Jae Myung in New Delhi.

Additionally, HD Hyundai wants to encourage domestic talent by funding a shipbuilding training facility and assisting South Korean equipment companies in breaking into the Indian market.

The Indian government intends to initially place shipbuilding orders with HD Hyundai’s South Korean shipyards before the joint shipyard begins operations and send local workers to gain practical expertise, according to HD Hyundai.

An HD Hyundai official stated that the newest agreement signals the shift of bilateral shipbuilding cooperation into the commercial execution stage and that the collaboration is anticipated to aid in securing new orders and opening up prospects for Korean partners to grow internationally.

In other news, Hyundai Motor announced Tuesday that it has struck a deal with TVS Motor Company Ltd. of India to work together on creating an electric three-wheeler for the Indian market.

Leveraging its research and development (R&D) skills and human-centric design methodology, Hyundai Motor will head the design and joint development of the electric three-wheeler under the joint development agreement signed in New Delhi on Monday (local time).

TVS Motor will use its electric vehicle (EV) platform, three-wheeler engineering experience, and understanding of the local market to co-develop the product.