South Korean Shipbuilder Hanwha Ocean Secures Landmark U.S. Navy Maintenance Deal

Hanwha Ocean, the major South Korean shipbuilder, has secured a groundbreaking contract with the U.S. Navy for the maintenance, repair, and overhaul (MRO) of a 40,000-ton logistics support vessel, South Korea’s Yonhap News Agency has reported.

The contract is said to mark the first instance of a South Korean shipyard winning a regular overhaul deal for a U.S. Navy vessel.

The contract stipulates that the U.S. Navy’s logistics support ship will undergo regular maintenance at Hanwha Ocean’s Geoje shipyard in South Korea.

Hanwha Ocean views the deal as a significant opportunity to enter the U.S. MRO market wth the U.S. Navy, which is estimated to be worth approximately $15 billion annually.

The milestone follows Hanwha Ocean’s signing of a Master Ship Repair Agreement (MSRA) with the U.S. Navy in July. The MSRA, granted to companies meeting stringent quality standards for ship maintenance services, allows Hanwha Ocean to participate in MRO projects involving U.S. Navy vessels.

The company’s recent acquisition of American shipbuilder Philly Shipyard is expected to further bolster its entry into the U.S. market and expand its MRO reach.

Collectively, the developments are expected to strengthen Hanwha Ocean’s position in the global naval shipbuilding market.

The maintenance contract follows U.S. Navy Secretary Carlos Del Toro’s visit to Hanwha Ocean in February as part of his broader Maritime Statecraft initiative, which aims to restore the United States as a comprehensive maritime power, with a particular focus on countering China’s dominant position in global shipbuilding.

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