Hanwha Ocean wins Korea's first deal to overhaul U.S. Navy warship

Industry

Hanwha Ocean wins Korea's first deal to overhaul U.S. Navy warship

Published: 29 Aug. 2024, 18:12

LEE JAE-LIM
lee.jaelim@joongang.co.kr

Carlos Del Toro, secretary of the U.S. Navy, second from left, inspects Hanwha Ocean's shipyard during his visit on Feb. 27. [HANWHA OCEAN]

Hanwha Ocean, a major Korean shipbuilder, said on Thursday that it secured a deal to overhaul a 40,000-ton U.S. Navy dry cargo and ammunition ship.

It marks the first time a Korean shipyard had won a ship maintenance, repair and overhaul (MRO) contract from the U.S. Navy.

Under the contract, the U.S. Navy vessel will dock at Hanwha Ocean’s shipyard in Geoje, South Gyeongsang, for comprehensive maintenance and inspection.

The deal's announcement comes a month after the shipbuilder signed the Master Ship Repair Agreement (MSRA) with the U.S. Navy’s Supply Systems Command (Navsup) on July 22. Only shipbuilders with the license can bid on MRO projects for the U.S. Navy.

The Korean shipbuilder is pushing hard to enter the lucrative U.S. naval maintenance sector. Hanwha Group wholly acquired Philadelphia-based shipbuilder Philly Shipyard in June for $100 million.

Carlos Del Toro, Secretary of the U.S. Navy, praised the acquisition as “a game-changing milestone in our new maritime statecraft.”

“This contract to overhaul a U.S. Navy ship is a stepping stone into the global ship MRO market, expected to exceed $60 billion annually,” a Hanwha Ocean spokesperson said in a statement. “Thanks to thorough preparation, we can provide timely and high-quality overhaul services, building trust with the U.S. Navy.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]