HD HHI wins strategic deal for U.S. Navy ship projects

[Graphics by Song Ji-yoon and Han Yu-bin]

HD Hyundai Heavy Industries Co., one of the world‘s largest shipbuilders, is expanding its global reach via partnerships with leading defense companies to tap into lucrative U.S. Navy ship projects. These include maintenance, repair, and overhaul (MRO) operations that are valued at approximately 20 trillion won ($14.6 billion) annually.

HHI inked a memorandum of understanding (MOU) with GE Aerospace Co. on Monday to collaborate on ship propulsion systems during the Maritime Aerospace Exhibition, which took place in Washington, D.C. Under the agreement, GE Aerospace will provide technical expertise and supply top-notch gas turbines for ship propulsion, while HD HHI will contribute its ship design and construction capabilities, with the collaboration extending to MRO services for U.S. Navy ships.

The partnership presents a significant opportunity for HHI to access technical support for shipbuilding and MRO projects. GE Aerospace, a global leader in technology alongside Rolls-Royce Ltd, dominates the world’s gas turbine market for naval vessels.

The global market for naval vessels MRO is highly lucrative. Mordor Intelligence forecasts a growth rate of 10.1 percent from $57.7 billion this year to $63.6 billion by 2029, and the naval vessels MRO market in the United States is currently worth 20 trillion won annually.