Hanwha Ocean scores Korea’s 1st US warship maintenance deal

Hanwha’s shipbuilding unit looks to spearhead warship maintenance, repair and operations market

In this file photo, US Secretary of the Navy Carlos Del Toro (second from left) visits Hanwha Ocean and gets briefed on the Korean shipbuilder's capabilities on February 27, 2024. (Hanwha Ocean)

Hanwha Ocean has secured Korea’s first warship maintenance project from the United States Navy, pioneering the market for the country’s maritime defense industry.

According to Hanwha Ocean on Thursday, the company landed a depot maintenance contract for the US Navy’s 40,000-ton-class auxiliary ship. The company explained that the project was only open to those who had signed a master ship repair agreement (MSRA) with the US Naval Supply Systems Command.

Hanwha Ocean announced in July that it had inked the MSRA with the US NSSC to secure the right to bid for maintenance, repair and operations (MRO) projects for the next five years.

With this contract, the Korean shipbuilder has officially entered the US Navy’s MRO market, estimated at 20 trillion won ($15 billion) per year, opening up possibilities for global defense exports in the future.

Hanwha Ocean plans to demonstrate its top-notch ship technology systematic maintenance infrastructure capabilities to the US Navy through timely delivery of the auxiliary ship’s depot maintenance project.

The Korean shipbuilder expects to expand its involvement in US Navy warship projects, as it looks to create synergy between the first MRO contract and Hanwha Group’s $100 million acquisition of the Philly Shipyard.

“The entry into the US Navy’s maintenance project within the global ship MRO market, which is expected to be more than 80 trillion won a year, will be a big stepping stone for a new leap forward,” said an official from Hanwha Ocean.

“We have been carrying out thorough preparations, inspections and analysis, and through this, we have gained confidence to build trust with the US Navy and secure profits by offering good quality depot maintenance in time. We also hope to contribute to energizing relevant industries by cooperating with small and medium-sized maintenance companies in Busan and South Gyeongsang Province.”

Hanwha Ocean's Geoje Shipyard in South Gyeongsang Province (Hanwha Ocean)

By Kan Hyeong-woo(hwkan@heraldcorp.com)