Did South Korea's HD Hyundai Heavy Win a Major US Navy MRO Project?
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Synopsis
In a significant move, HD Hyundai Heavy Industries has secured a pivotal MRO contract for the US Navy's USNS Alan Shepard. This project not only showcases South Korea's shipbuilding expertise but also strengthens U.S.-South Korea relations amid a multi-billion dollar cooperation initiative.
Key Takeaways
- HD Hyundai Heavy secures an MRO project with the U.S. Navy.
- The project is for the USNS Alan Shepard cargo ship.
- Located in Ulsan, South Korea, the shipyard will conduct the MRO work.
- Expected completion is set for November.
- A part of the MASGA initiative to boost U.S.-South Korea shipbuilding collaboration.
Seoul, Aug 6 (NationPress) HD Hyundai Heavy Industries, the foremost shipbuilder in South Korea, announced on Wednesday that it has clinched a maintenance, repair, and overhaul (MRO) contract for a U.S. Navy cargo vessel.
The firm is set to conduct the MRO operations on the USNS Alan Shepard (T-AKE-3), a 41,000-ton Lewis and Clark-class dry cargo ship, at the HD Hyundai Mipo Dockyard Co. shipyard located in Ulsan, approximately 300 kilometers southeast of Seoul, as revealed in a company press release.
The undertaking is expected to be finalized and delivered by November, according to reports from Yonhap news agency.
This contract signifies the inaugural MRO engagement following the South Korean government’s proposed US$150 billion shipbuilding cooperation initiative with the U.S., known as “Make American Shipbuilding Great Again” (MASGA), aimed at rejuvenating the U.S. shipbuilding sector.
The MASGA initiative is a component of a larger $350 billion investment plan committed by Seoul, in light of Washington's decision to reduce reciprocal tariffs on South Korean imports from 25 percent to 15 percent.
The company has not disclosed the financial details of the contract.
This year, HD Hyundai has initiated various programs to bolster bilateral shipbuilding collaboration with the United States.
In April, the firm established a strategic partnership with Huntington Ingalls Industries (HII), the largest defense shipbuilder in the U.S., focusing on technological cooperation and joint naval ship construction.
In June, HD Hyundai entered into a strategic alliance with Edison Chouest Offshore (ECO), a U.S.-based commercial shipbuilder, to strengthen ties in the commercial shipbuilding arena.
HD Hyundai Heavy and HD Hyundai Mipo Dockyard are among the three main affiliates under HD Korea Shipbuilding & Offshore Engineering Co. (HD KSOE), alongside HD Hyundai Samho Heavy Industries.
HD KSOE functions as a sub-holding entity of HD Hyundai, previously recognized as Hyundai Heavy Industries Holdings.
Point of View
This contract between HD Hyundai and the U.S. Navy represents not just a business transaction but a deepening of diplomatic and economic ties between South Korea and the United States. As the global landscape shifts, such partnerships are crucial for both nations to maintain their strategic advantages in the shipbuilding sector.
NationPress
19/08/2025
Frequently Asked Questions
What is the significance of the MRO project?
The MRO project is significant as it enhances U.S.-South Korea relations and supports the revitalization of the U.S. shipbuilding industry through the MASGA initiative.
Where will the MRO work take place?
The MRO work will be conducted at HD Hyundai Mipo Dockyard Co.'s shipyard in Ulsan, South Korea.
What is the expected timeline for project completion?
The project is expected to be completed and delivered by November.
What is the MASGA initiative?
The MASGA initiative is a South Korean government proposal aimed at enhancing shipbuilding cooperation with the U.S., involving a considerable investment to boost both industries.
Who are HD Hyundai's partners in the U.S.?
HD Hyundai has partnered with major U.S. companies like Huntington Ingalls Industries and Edison Chouest Offshore to foster technological collaboration and joint naval ship construction.
