Leading shipbuilders of Korea, US to jointly invest in shipyard takeover or establishment of new shipyard in US
HD Hyundai has joined hands with Huntington Ingalls Industries, the largest military shipbuilder in the United States, to build auxiliary ships for the US Navy’s next-generation fleet, marking the first-of-a-kind collaboration between Korea and the US.
According to HD Hyundai, the two shipbuilders signed a memorandum of agreement to cooperate on the design and construction of commercial and naval vessels at the Lahan Select Hotel in Gyeongju, North Gyeongsang Province, on Sunday. The city will host the 2025 Asia-Pacific Economic Cooperation summit from Tuesday to Sunday.
HD Hyundai Heavy Industries and Huntington Ingalls Industries also agreed to jointly invest in the acquisition or establishment of new shipbuilding facilities in the US under the memorandum. HD Hyundai will supply block modules and key components to Huntington Ingalls Industries’ two major shipyards — Newport News Shipbuilding in Virginia and Ingalls Shipbuilding in Mississippi — as part of their expanded cooperation.
As the two sides decided to work together in the maintenance, repair and overhaul sector of the US Navy and allied fleets, they added that the partnership is considering the establishment of a joint engineering venture in shipbuilding.
“Through joint participation in US Navy procurement programs and investments aimed at establishing ship production bases in the US, the two nations’ key companies are taking a major step toward deeper strategic collaboration,” said Joo Won-ho, president of the Naval & Special Ship Business Unit at HD Hyundai Heavy Industries.
The next-generation auxiliary ships are projected to deliver fuel and logistical supplies to military vessels with enhanced mobility and operational efficiency to play a key role in the US Navy’s strategy to modernize its logistics and replenishment capabilities. In September, the US Navy issued a request for proposals for the concept design phase of the next-generation auxiliary ship program.
“This marks the beginning of deeper collaboration between not only our companies, but each of our countries, that will support enduring changes to military and commercial shipbuilding in America,” said Eric Chewning, executive vice president at Huntington Ingalls Industries.
As part of this year’s APEC CEO Summit Korea, Chewning will deliver a keynote speech on the strategic collaboration between Korea and the US in shipbuilding at the Future Tech Forum hosted by HD Hyundai in Gyeongju on Monday.
hwkan@heraldcorp.com
