Hanwha Ocean Completes Landmark U.S. Navy Ship Maintenance, Marking First Korean Shipyard Contract

In a significant milestone for South Korea’s maritime industry, Hanwha Ocean has successfully completed maintenance and overhaul work on the Military Sealift Command’s dry cargo ship USNS Wally Schirra, marking the first time a Korean shipyard has been awarded a U.S. Navy vessel maintenance contract.

The comprehensive maintenance project, conducted at Hanwha Ocean’s Geoje Shipyard, spanned approximately six months and encompassed extensive hull and engine repairs, major equipment inspections and replacements, and system upgrades. The work demonstrated the shipyard’s ability to meet the U.S. Navy’s rigorous technical standards.

Dae-Sik Kim, Managing Director of Hanwha Ocean’s MRO business, emphasized the significance of the achievement, stating, “It is a great honor to assist the U.S. Navy through this project. Based on the experience gained from Wally Schirra, we will continue to strive to make greater contributions as a key partner”.

“This serves as a reminder of the close partnership between our two countries and the opportunities we have to continue to strengthen that partnership,” said Patrick J. Moore, Command Officer of Military Sealift Command Office, Korea (MSCOK).

During the maintenance process, Hanwha Ocean was able to identify previously undetected maintenance requirements and providing effective solutions.

This project follows Hanwha Ocean’s securing of a Master Ship Repair Agreement (MSRA) with the U.S. Navy in July 2024. The company has already secured additional work, winning a contract in November for the scheduled maintenance of USNS Yukon, an MSC replenishment oiler assigned to the U.S. Navy’s 7th Fleet.

The contract comes at a crucial time for U.S. naval maintenance capabilities. The American shipbuilding industry has faced significant challenges in recent decades, with widespread delays and cost overruns hampering the Navy’s ability to maintain its fleet effectively.

Hanwha Ocean’s success with the USNS Wally Schirra maintenance project reflects the company’s broader maritime expertise. Since 1973, the company has established itself as a leading global shipbuilder, specializing in various vessel types including LNG carriers, commercial ships, drillships, and specialty ships.

The successful completion of the project signals a potential shift in U.S. Navy maintenance strategies, opening doors for international collaboration while maintaining high technical standards and operational efficiency.

The completion of this maintenance contract represents a strategic expansion of South Korean shipbuilding capabilities into the U.S. defense sector. Hanwha has recently strengthened its position in the U.S. market by acquiring commercial Philly Shipyard through its unit Hanwha Ocean Co.

Earlier this week, a unit of Hanwha acquired a 9.9% stake in Australian shipbuilder Austal—a major U.S. Navy contractor through its Austal USA subsidiary. Hanwha intends to increase its stake to 19.9%. According to a company statement, this acquisition aims to strengthen strategic partnerships both in the U.S. and globally, capitalizing on the current boom in defense and shipbuilding industries.

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