Hanwha Ocean announced on August 29 that the company has won the U.S. Navy’s MRO service contract for a 40,000-ton replenishment oiler through a competitive bidding process, marking Hanwha Ocean’s first entry into the U.S. naval defense market, which is worth 20 trillion won (about $14.8 billion) annually. The logistics supply ship is part of the U.S. Navy 7th Fleet, the largest U.S. fleet in the Western Pacific.
Under the contract, the U.S. Navy’s 40,000-ton replenishment oiler will undergo an overhaul and inspection at Hanwha Ocean’s Geoje Shipyard, and will conduct on-shore repair work through the shipyard’s floating facilities.
It is worth noting that MRO service contracts for U.S. Navy ships can only be undertaken by shipyards that are certified under the Major Ship Repair Agreement (MSRA). The US Naval Supply Systems Command awarded this Heavy Maintenance Qualification Certificate in July 2024 to Hanwha Ocean.
Currently, Hanwha Ocean is committed to expanding its MRO market share for U.S. Navy ships and signed a 100% equity acquisition agreement with Philadelphia Shipyard for $100 million in June this year. Hanwha Ocean plans to complete the acquisition process of Philadelphia Shipyard and apply for shipbuilding qualification by the end of this year to secure shipyard capacity in the region.
A Hanwha Ocean source said, “The company’s entry into the U.S. Navy’s ship repair business will be a big step forward in the global ship MRO market, which is expected to reach more than 80 trillion won annually. The company is confident that it will build trust with the U.S. Navy and secure sufficient profits by providing timely and high-quality original equipment costs.”