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The USNS Alan Shephard arrives at the Yeompo wharf near HD Hyundai Mipo. (Yonhap)

HD Hyundai Heavy Industries is pursuing an agreement to cooperate with the US military shipbuilding giant Huntington Ingalls on the next generation of naval auxiliary vessels. Following Hanwha Ocean’s acquisition of Philly Shipyard, HD Hyundai has joined the “Make American Shipbuilding Great Again” project by pursuing a joint venture with an American shipbuilder. 

HD Hyundai and Huntington Ingalls signed a memorandum of agreement on Sunday to cooperate on the design and construction of both commercial and military ships. Their agreement was signed in Gyeongju, North Gyeongsang Province, where the Asia-Pacific Economic Cooperation events are ongoing this week. 

The two firms have submitted their conceptual designs for the next generation of naval auxiliary ships in a public bid. HD Hyundai announced that it will draw from its experiences in both Korea and New Zealand to build auxiliary ships with improved mobility and efficiency. 

Next-generation auxiliary ships being developed by the US Navy will be tasked with delivering fuel and materiel to battleships deployed in naval operations, and are part of the strategy to modernize and upgrade the US Navy’s capacity in supply and distribution. 

If HD Hyundai is entrusted to build US Navy auxiliary vessels, it will provide manpower, equipment, and modules built from domestically made components to Huntington’s US shipyard.  

“This is the first time that a Korean shipbuilder is partaking in a joint investment to build US Navy auxiliary ships,” an employee at HD Hyundai Heavy Industries said. 

In September, HD Hyundai began maintenance on a 41,000-ton US dry cargo and ammunition ship. 

HD Hyundai and Huntington Ingalls will explore building and acquiring shipbuilding facilities in the US. HD Hyundai will also supply block modules and key materials to Huntington Ingalls’ Newport News Shipbuilding and Ingalls Shipbuilding.

HD Hyundai announced that the two firms are also considering starting a joint venture for shipbuilding engineering and have agreed to cooperate on MRO (maintenance, repair, and overhaul) for US Navy ships and vessels for allied countries. 

If HD Hyundai successfully enters the US shipbuilding industry through joint investments with a US builder, it is expected to bolster the MASGA project for shipbuilding cooperation between the US and South Korea. 

Hanwha Ocean acquired a US shipyard last year to create Hanwha Philly Shipyard, a base from which to expand operations in the US. Hanwha is also performing MRO work on US Navy vessels. 

Joo Won-ho, head of HD Hyundai’s naval and special ship unit, called the MOA a “real-life example of cooperation between premier Korean and American companies on military shipbuilding.” 

“They will jointly partake in US Navy contracts and investments for securing shipbuilding production bases within the US,” Joo said. 

By Lee Bon-young, senior staff writer

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