HD Hyundai partners with Huntington Ingalls on Navy ships

HD Hyundai has teamed with Huntington Ingalls, the largest U.S. defense shipbuilder, to jointly build the U.S. Navy’s next-generation logistics support ships. This is the first time a South Korean shipyard will participate in building U.S. naval vessels. As cooperation expands from maintenance and repair to construction, the U.S.-Korea MASGA project is expected to gain momentum.

HD Hyundai said Oct. 26 that it signed a memorandum of agreement with Huntington Ingalls at the Lahan Select Hotel in Gyeongju, North Gyeongsang Province. The pact focuses on cooperation in designing and constructing the Navy’s next-generation logistics support ships.

However, U.S. laws such as the Burns-Tollefson Act, which prohibit overseas construction of American warships, mean the ships will likely be built in the United States.

Next-generation logistics support ships deliver fuel and supplies to combat vessels at sea and play a key role in modernizing the Navy’s supply and logistics capabilities. Industry officials say the agreement could give South Korean shipbuilders a foothold in a market projected to average about 43 trillion won annually over the next 30 years. The U.S. Navy plans to expand its fleet from 296 ships to 381 by 2054.

“This agreement is a practical example of cooperation between the leading defense shipbuilders of both countries," said Joo Won-ho, president of HD Hyundai Heavy Industries’ special-ship division. "It also opens the door to joint bids on U.S. Navy projects and investment to establish production capacity in the United States.”


Jae-Hyeng Kim monami@donga.com