Hanwha Ocean has secured another maintenance, repair, and overhaul (MRO) order for U.S. warships. Following the announcement by newly elected President Trump to “cooperate with the Korean shipbuilding industry,” Hanwha Ocean announced this order, stating that it “opens a new milestone for the U.S.-Korea maritime defense alliance.”
On November 12, Hanwha Ocean announced that it had secured a maintenance contract for the U.S. Navy’s Seventh Fleet oiler, USNS Yukon.
USNS Yukon entered service in March 1994. The vessel is 206 meters long, 29.6 meters wide, with a displacement of approximately 31,000 tons. Hanwha Ocean plans to complete the maintenance work by April next year and deliver it to the U.S. Navy.
On August 28, Hanwha Ocean became the first Korean shipyard to win the MRO project for the US Navy replenishment oiler “Wally Schirra”. Less than three months later, it announced a new order again, becoming the first and only Korean shipyard to win two MRO orders from the US Navy’s Navy Seventh Fleet this year.
Last month, Stephen T. Koehler, commander of the U.S. Navy’s Pacific Fleet, visited Hanwha Ocean’s Geoje Shipyard, toured the “Wally Schirra” under repair, and met with Hanwha Group Vice Chairman Kim Dong-kwan. During the talks, the two sides discussed further cooperation in MRO for US Navy ships.
On the morning of November 7, the newly elected US President Trump said in a phone call with South Korean President Yoon Seok Youl, “The US shipbuilding industry needs South Korea’s help. I know very well that South Korea has world-class warship and shipbuilding capabilities. I think we need to work closely with South Korea not only in ship building, but also in warship maintenance, repair and overhaul.” This indicates that the U.S. and South Korea will have deeper cooperation in the field of shipbuilding.
The annual demand for MRO services by the U.S. Navy is valued at up to $15 billion. Hanwha Ocean has secured MRO contracts twice within less than three months. The Korean industry believes that as Korean shipyards’ MRO performance in the U.S. improves, there is potential for securing large contracts for building U.S. warships in the future.
Notably, on June 20 this year, Hanwha Group signed a contract to acquire 100% equity of Philly Shipyard in the U.S.. The acquisition amount is $100 million, marking the first case of a Korean company acquiring a U.S. shipyard.