HD Hyundai, Philly Shipyard seal deal on U.S. warship construction
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HD Hyundai Heavy Industries has signed a preliminary agreement with Pennsylvania-based Philly Shipyard on the construction and maintenance of U.S. warships and government-operated vessels.
Under the memorandum of understanding (MOU) announced Wednesday, HD Hyundai Heavy Industries will provide design and material package supplies for naval vessels and ships commissioned by the U.S. government along with maintenance, repair and overhaul (MRO) services. This comes as Philly Shipyard expands its operations in the U.S. warship sector.
The partnership between the two dates back to 2005, with HD Hyundai initially supplying blueprints and materials for commercial vessels. The expanded cooperation now includes warship and government vessel construction projects with the U.S. Navy, the Coast Guard and federal maritime agencies.
"Through cooperation with a U.S. company in warship and government vessel construction and MRO operations, we anticipate that HD Hyundai Heavy Industries will further enhance its influence in the global defense market," said Joo Won-ho, head of HD Hyundai Heavy Industries' Naval & Special Ship Business Unit.
"Philly Shipyard and Hyundai Heavy Industries have a long and gratifying history of working together, and we are honored by the idea of future cooperation on opportunities for U.S. government and commercial shipbuilding projects," Steinar Nerbovik, president and CEO of the U.S. shipbuilder, remarked.
Philly Shipyard, a subsidiary of Aker ASA Group, a Norwegian group specializing in the maritime, offshore wind and energy sectors, was established in 1997 on the grounds of the Philadelphia Naval Shipyard. Since 2003, Philly Shipyard has built more than 50 percent of all large U.S. vessels compliant with the Jones Act, and it has been a key player in the construction and maintenance of government-operated vessels, including those for the U.S. military.
The agreement with the shipyard is part of HD Hyundai's broader strategy to increase its presence in the U.S. defense market, which has included a visit by the U.S. Secretary of the Navy in February to verify the company's capabilities in warship construction.
This month, it signed an MOU with U.S. AI firm Palantir Technologies to co-develop an unmanned surface vessel for maritime surveillance.
BY SEO JI-EUN [seo.jieun1@joongang.co.kr]
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