HJ Heavy Industries has established a cluster consortium with shipbuilding and equipment companies in the Busan and South Gyeongsang region to pursue naval vessel maintenance, repair, and overhaul business. As domestic and international demand for MRO is expected to increase, the company aims to create a foundation for mutual growth by connecting with the local shipbuilding industry and use it as a springboard for overseas expansion.

On July 22, HJ Heavy Industries announced that it signed an MOU on MRO consortium formation with 10 shipbuilding-related specialized companies, including International Marine and Orient Shipyard, at its Yeongdo Shipyard in Busan. The parties agreed to cooperate closely in bidding for MRO projects and performing related tasks by efficiently utilizing their resources and capabilities, including technologies, personnel, facilities, and expertise.

With the recent opening of the U.S. Navy MRO market, estimated to be worth 20 trillion won, domestic naval defense companies are also entering the market one after another. The Busan and South Gyeongsang area, in particular, is expected to create significant synergy effects on the local economy and job expansion due to its concentration of ship block manufacturing companies and various equipment industries for steel structures, piping, and wiring.

HJ Heavy Industries has thrown its hat into the ring for the overseas MRO market based on its accumulated experience in special vessel construction and depot maintenance. The company was designated as Korea’s first marine defense industry in 1974. Through the construction of state-of-the-art naval vessels and MRO projects, it has carried out over 1,200 naval vessel and military support system projects. The company anticipates that if the ongoing U.S. Navy Master Ship Repair Agreement (MSRA) negotiation is successfully completed, it will accelerate its entry into overseas markets. MSRA is an agreement between the U.S. government and general shipbuilding companies for the maintenance and repair of U.S. naval vessels. Companies that acquire MSRA qualify to participate in various U.S. Navy vessel maintenance projects.

Yoo Sang-cheol, CEO of HJ Heavy Industries, stated, “We have established this collaborative system to proactively respond to the growing domestic and international MRO market.” He added, “Through mutual growth and synergy effects among participating companies, we will establish a foothold for entering the global market, enhance the sustainability of the MRO business, and contribute to the development of the local economy.”

Source:Business Korea