HD Hyundai wins first U.S. Navy MRO deal

HD Hyundai Heavy Industries has landed a contract to maintain and repair a U.S. Navy vessel, marking the first order since the South Korean government proposed a joint shipbuilding project known as MASGA, short for Make American Shipbuilding Great Again. The deal is viewed as a major milestone for the Korean shipbuilding industry as it enters the U.S. military maintenance, repair, and overhaul market, which is estimated to be worth 10 trillion won annually.

On Aug. 6, HD Hyundai announced it had won a contract to carry out scheduled maintenance on the USNS Alan Shepard, a 41,000-ton cargo replenishment vessel assigned to the U.S. Navy’s Seventh Fleet. While this is the fourth U.S. Navy MRO order awarded to a Korean shipbuilder, it is HD Hyundai’s first.

The Alan Shepard, named after America’s first astronaut, was commissioned in 2007. The vessel is 210 meters long, 32 meters wide, and 9.4 meters high. Maintenance is scheduled to begin in September at a quay near HD Hyundai Mipo Dockyard in Ulsan, including propeller cleaning, tank servicing, and equipment inspection. The ship is set to be returned to the U.S. Navy in November.

Industry officials say the deal signals the start of the MASGA initiative, which has gained momentum through recent tariff talks between South Korea and the United States. The project includes plans to create a $150 billion joint fund for new shipyard construction, workforce training, supply chain rebuilding, and MRO investment.

“This is a highly meaningful MRO deal following the MASGA proposal,” said Joo Won-ho, head of HD Hyundai’s naval and special ship division.

HD Hyundai is expanding its presence in the U.S. market through strategic partnerships. In April, it signed a memorandum of understanding with Huntington Ingalls Industries, the largest U.S. defense shipbuilder, for technical collaboration. In June, it partnered with Edison Chouest Offshore, a major American shipbuilding firm.

Hanwha Ocean, another South Korean shipbuilder, has already secured three U.S. Navy MRO contracts since last year.


Jae-Hyeng Kim monami@donga.com