HD Hyundai wins second U.S. Navy MRO contract

HD Hyundai Heavy Industries has secured consecutive contracts to provide maintenance, repair, and overhaul services for U.S. Navy logistics support vessels.

On Jan. 7, the company said it recently won a contract for scheduled maintenance of the USNS Cesar Chavez, a 41,000-ton cargo replenishment ship assigned to the U.S. Navy’s 7th Fleet. The vessel measures 210 meters in length, 32 meters in width, and 9.4 meters in height, and was commissioned in 2012. HD Hyundai Heavy Industries plans to begin maintenance work at its Ulsan shipyard on Jan. 19. After completing more than 100 maintenance tasks, including repairs to the hull, structural components, and electrical systems, the ship is scheduled to be returned to the U.S. Navy in March.

The latest deal marks the company’s second MRO contract with the U.S. Navy. HD Hyundai Heavy Industries completed its first MRO project for the logistics support vessel USNS Alan Shepard late last year after winning the contract in August. The ship departed on Jan. 6 after the work was completed.

HD Hyundai plans to expand its naval vessel MRO business by building on the South Korea-U.S. shipbuilding cooperation initiative known as MASGA, short for Make American Shipbuilding Great Again. The strategy is also reflected in the company’s recent organizational restructuring. After the merger of HD Hyundai Heavy Industries and HD Hyundai Mipo on Dec. 1 last year, the integrated HD Hyundai Heavy Industries reorganized its former special ship business division into a naval and mid-sized vessel business division. HD Hyundai Heavy Industries Chief Executive Officer Joo Won-ho said the new division will improve efficiency in MRO operations and position the company to lead the U.S. naval vessel maintenance market.


최원영 o0@donga.com