Hanwha Ocean Wins 40,000t-Scale US Navy MRO Project... First in Korea

Entering the $20 Trillion Annual US Ship Maintenance, Repair, and Overhaul Market

A view of the American Philly Shipyard acquired by Hanwha Group. Photo by Hanwha Ocean

Hanwha Ocean has become the first domestic shipyard to win a maintenance contract for U.S. Navy vessels.

Hanwha Ocean announced on the 29th that it has secured the overhaul contract for a 40,000-ton U.S. Navy logistics support ship. This project is a regular overhaul for large U.S. Navy vessels that can only be performed by companies certified under the Maintenance Services and Repair Agreement (MSRA), marking the first time a domestic shipyard has undertaken such a project.

Under this contract, the U.S. Navy logistics support ship will dock at Hanwha Ocean’s Geoje facility to undergo comprehensive maintenance and inspection of the entire vessel. Additionally, onshore maintenance work utilizing the shipyard’s floating dock facilities will also be carried out.

Through this contract, Hanwha Ocean has entered the U.S. Navy ship MRO market, valued at approximately 20 trillion KRW annually. This establishes a foothold for expanding global defense exports. MRO stands for Maintenance, Repair, and Overhaul.

Previously, on the 22nd of last month, Hanwha Ocean signed the MSRA with the U.S. Navy Supply Systems Command. MSRA is a certification agreement between the U.S. government and shipbuilders that possess high-quality maintenance and repair capabilities and technology. Hanwha Ocean, which applied for MSRA certification in January, significantly shortened the typical certification period of over one year to seven months and secured the ship maintenance contract about a month later. This achievement reflects the high evaluation of Hanwha Ocean’s vessel technology and maintenance infrastructure by the U.S. Navy.

Having obtained the qualification to officially participate in MRO project bids for vessels regulated by the U.S. Navy over the next five years, Hanwha Ocean plans to firmly demonstrate its unparalleled ship technology and systematic maintenance infrastructure capabilities to the U.S. Navy through timely delivery of this logistics support ship overhaul project.

Hanwha Ocean views this project, which the U.S. Navy is conducting as a pilot in the Asia region, as a significant turning point for future changes in the U.S. Navy ship MRO market. In particular, combined with the recent acquisition of the Philadelphia-based Philly Shipyard, Hanwha Ocean’s contract win appears to accelerate Hanwha’s entry into the U.S. Navy ship business.

Carlos Del Toro, U.S. Secretary of the Navy, welcomed Hanwha Group’s acquisition of Philly Shipyard as a "game-changing milestone" that reshapes the new maritime statecraft landscape.

This contract was achieved with active support from the Republic of Korea Ministry of National Defense and the Defense Acquisition Program Administration and is regarded as a result of close defense cooperation between South Korea and the United States.

A Hanwha Ocean official expressed confidence, stating, "Entering the U.S. Navy maintenance business will be a major stepping stone for a new leap in the global ship MRO market, which is expected to exceed 80 trillion KRW annually." He added, "We have conducted thorough prior preparation, research, and analysis, and through this, we are confident in building trust with the U.S. Navy by providing high-quality overhauls on schedule while securing appropriate profits. We also aim to contribute to revitalizing related industries through win-win cooperation with small and medium-sized maintenance companies in the Busan and Gyeongnam regions."

Hanwha Ocean is the only company with construction achievements across all lineups of destroyer projects (KDX-I, II, III) currently operated by the Republic of Korea Navy, earning it the reputation as a "prestigious name in surface ships." Furthermore, by possessing world-class ship MRO capabilities, it aims to further solidify its status as a distinguished shipbuilder. Hanwha Ocean also plans to contribute to the successful Korean next-generation destroyer (KDDX) project, thereby enhancing the Republic of Korea Navy’s combat power.

This content was produced with the assistance of AI translation services.