HD Hyundai is fully jumping into ‘MASGA (Make America’s Shipbuilding Great Again)’ for Korea-U.S. shipbuilding cooperation by building a new shipyard in the U.S. A green light has also turned on for winning U.S. naval vessel projects, for which the Donald Trump administration exceptionally announced a policy allowing overseas construction.

HD Hyundai announced on Oct. 23 that it signed a contract on Oct. 22 (local time) to establish a shipbuilding joint venture with Kiewit, the largest construction, engineering, and infrastructure company in the U.S. The two companies formed a strategic partnership in July of this year and promoted cooperation in joint ship construction and the production of ship blocks and modules in the U.S., which has borne fruit with this contract.

The name of the joint venture is ‘HD KIEWIT SHIPBUILDING (HD Kiewit Shipbuilding).’ By combining the technological prowess and shipyard operation know-how possessed by HD Hyundai with Kiewit’s large-scale infrastructure manufacturing and construction execution capabilities, the plan is to build a cutting-edge smart shipyard that will present a new standard for the US shipbuilding industry. The location of the shipyard is reported to be likely in the US Southwest. The goal is to start construction next year and begin operations in 2029.

HD Hyundai sought differentiation through the construction of a new shipyard, unlike Hanwha Ocean, which acquired and restarted a local shipyard. Hanwha Group, the only one among the three major shipbuilding companies to own a shipyard in the US, acquired a stake in the existing Philly Shipyard. HD Hyundai also searched for a shipyard to acquire over the years, but it is known that it could not find a suitable property in terms of size and cost, as most were outdated.

HD Kiewit Shipbuilding will be the first among U.S. shipyards to apply the ‘future shipyard’ model and digital production technology being promoted by HD Hyundai. By introducing cutting-edge technologies such as a ‘digital twin’ (a virtual model that implements a reality model on a digital screen), automation systems, and robot welding, it plans to build a smart shipyard where the entire process from design to production is operated based on data. Through this, the concept is to increase productivity, quality, and safety while simultaneously resolving the problem of a shortage of skilled labor.

As the construction of the shipyard becomes visible, the possibility of winning orders for U.S. warships that can be built in Korea is also increasing. President Trump exceptionally allowed the overseas construction of up to two US warships, presenting as a prerequisite that the companies build a new shipyard in the United States or secure ownership or a majority stake in an existing shipyard. Until now, Hanwha Ocean was the only domestic shipbuilder to meet this condition.

Using Kiewit Shipbuilding as a stepping stone, HD Hyundai plans to explore business opportunities in the fields of U.S. Navy logistics support ships and commercial ships, and also review the production and supply of ship blocks and modules. Furthermore, it plans to expand its business scope to the port infrastructure sector. Choi Han-nae, Head of the Planning Division at HD Korea Shipbuilding & Offshore Engineering, the intermediate shipbuilding holding company of HD Hyundai, said, “We will concentrate our capabilities to contribute to the rebuilding of the U.S. shipbuilding industry and the expansion of South Korea-U.S. shipbuilding cooperation, and discover new business opportunities.”

Source:Business Korea