HD Hyundai Heavy Industries has entered the U.S. MRO market by becoming the first Korean shipbuilder to sign a ship maintenance, repair and operations (MRO) agreement with the U.S. Navy.
HD Hyundai Heavy Industries announced on Nov. 11 that it has signed a Ship Maintenance Service Agreement (MSRA) with the US Naval Supply Systems Command. The MSRA is an agreement between the U.S. government and private shipyards to provide MRO services for U.S. ships. Before participating in the MRO program for U.S. ships in service, it is necessary to sign the MSRA in advance.
Under the agreement, HD Hyundai Heavy Industries will be eligible to bid on MRO programs for support ships belonging to the US Naval Supply Systems Command and for U.S. Navy combatant ships over the next five years.
It is understood that HD Hyundai Heavy Industries applied for the MSRA to sign the agreement in May 2023 and completed the facility and quality due diligence in January 2024; and the safety due diligence and financial due diligence in March and May, respectively.
The signing of the MSRA with the U.S. Navy means that HD Hyundai Heavy Industries has the opportunity to enter the U.S. Navy’s ship MRO market, which is valued at 20 trillion won (about $14.5 billion) annually. The shipbuilder plans to expand its MRO market in Asia, South America and other regions based on its MRO technology experience in the Philippines.
In addition, HD Hyundai Heavy Industries hopes to build trust with the U.S. military authorities by providing MRO services for U.S. Navy ships and expand into new shipbuilding projects such as ships, special ships, and business ships.
An official from HD Hyundai Heavy Industries said, “The company will enter the U.S. ship MRO market based on the MRO business technology and experience it has accumulated in the Philippines, thereby further expanding the scope of exports of the Korean shipbuilding industry.”