U.S.-based military shipbuilder Huntington Ingalls and HD Hyundai Heavy Industries (HHI) have signed a memorandum of understanding (MoU) today to explore opportunities to collaborate on accelerating ship production in support of defense and commercial shipbuilding projects.
This strategic partnership aims to leverage the combined expertise and resources of both companies to advance technological innovation, maximize production efficiency, and strengthen the global defense industry.
The efforts applied under the MoU aim to increase the collective maritime industrial base strength of both the U.S. and South Korea.
It is reported that HII is a 135-year-old defense contractor headquartered in Virginia, USA. Its Newport News Shipbuilding (NNS) is mainly responsible for building aircraft carriers and nuclear submarines for the US Navy. More than 50% of the US Navy’s ships come from HII.
HD Hyundai Heavy Industries is expected to obtain orders from the U.S. Naval Defense through the synergy effect with HII, which specializes in shipbuilding. In order to renew its aging fleet, the U.S. Navy is expected to have a large number of ship orders, with plans to expand its current fleet of 296 ships to 381 ships by 2054, and the ship maintenance, repair, and operations (MRO) market is also quite promising.
“Today’s agreement reflects our commitment to explore all opportunities to expand U.S. shipbuilding capacity in support of national security. By working with our shipbuilding allies and sharing best practices, we believe this MoU offers real potential to help accelerate delivery of quality ships,” said Brian Blanchette, Executive Vice President and President at Huntington Ingalls.
“This partnership marks a new milestone for both of our companies and provides us with the unique opportunity to expand our expertise in shipbuilding,” Won-ho Joo said. “We look forward to working with HII to explore new possibilities and deliver even greater value to our customers,” added Won-ho Joo, chief executive of the naval and special ship business unit at HHI.
In order to enter the U.S. Navy maintenance market, HD Hyundai Heavy Industries has signed a Ship Maintenance Service Agreement (MSRA) in July 2024 with the US Naval Supply Systems Command.The MSRA is an agreement between the U.S. government and private shipyards for the provision of MRO services for U.S. ships. To participate in the MRO program for U.S. ships in service, the MSRA must be signed in advance.
Under the agreement, HD Hyundai Heavy Industries will be eligible to bid for MRO programs for support ships belonging to the U.S. Naval Supply Systems Command and U.S. Navy combatant ships over the next five years.