Hanwha Ocean Becomes 1st South Korean Shipyard To Win U.S. Navy Maintenance Contract

Hanwha Ocean, a leading South Korean shipyard, has secured a historic deal to repair a 40,000-ton U.S. Navy logistics support vessel.

This is the first time a South Korean shipyard has been granted a regular overhaul contract for a U.S. Navy vessel.

The contract comes after Hanwha Ocean signed a Master Ship Repair Agreement (MSRA) with the U.S. Navy’s Naval Supply Systems Command (NAVSUP).

The MSRA, signed on July 22, 2024, certifies Hanwha Ocean’s shipbuilding, maintenance, repair, and overhaul (MRO) capabilities, allowing it to participate in U.S. Navy MRO projects.

Hanwha Ocean received the certification in just seven months, a process that takes over a year.

The awarded overhaul project will occur at Hanwha Ocean’s Geoje shipyard, where the U.S. Navy vessel will undergo complete maintenance and inspection.

The shipyard will also use its floating shipbuilding facilities to do onshore overhauls.

Hanwha Ocean’s recent acquisition of Philly Shipyard strengthens its position in the U.S. market and is expected to expand its MRO capabilities.

The MSRA certification and Philly shipyard acquisition are expected to enhance Hanwha Ocean’s reputation and naval shipbuilding and maintenance capabilities.

The contract and MSRA certification follow U.S. Navy Secretary Carlos Del Toro’s visit to the Hanwha Ocean in February as part of his Maritime Statecraft Initiative.

Del Toro praised Hanwha Group’s acquisition of Philly Shipyard, describing it as a transformative development in U.S. maritime strategy.

The deal is a breakthrough for Hanwha Ocean to enter the U.S. MRO market, valued at around $15 billion annually, and strengthen its position in the global ship MRO market, expected to exceed $60 billion annually.

The agreement achieved with the help of South Korea’s Ministry of National Defense and the Defense Acquisition Program Administration strengthened defense cooperation between South Korea and the U.S.

Hanwha Ocean representative stated that the contract to overhaul a United States Navy ship is an initial step into the global ship MRO market, adding that they can provide timely and exceptional overhaul services and build trust with the U.S. Navy.

Reference: Hanwha Ocean

Hanwha Ocean Becomes 1st South Korean Shipyard To Win U.S. Navy Maintenance Contract appeared first on Marine Insight – The Maritime Industry Guide

Source: Maritime Shipping News