Korean shipbuilders are accelerating efforts to secure local bases for expanding their overseas naval maintenance, repair, and overhaul (MRO) businesses. As key allies like the U.S. and Canada emphasize domestic maintenance capabilities, these companies are moving beyond simple contracts to pursue acquisitions and strategic partnerships with local shipyards.
According to industry sources, Hanwha recently made a non-binding conditional offer of $1.05 billion to $1.2 billion to acquire the U.S. division of Australian shipbuilding and defense firm Austal. This marks Hanwha's second expansion into the U.S. shipbuilding sector, following its acquisition of a shipyard in the Philippines in 2024. If successful, the acquisition will enhance Hanwha's local capabilities for both shipbuilding and MRO in the U.S.
Industry analysts point to the importance of local production and maintenance bases in the naval sector as a key reason for Hanwha's aggressive pursuit of U.S. shipyards. While MRO can be performed at domestic shipyards, having a local base allows for quicker responses without the need to transport vessels over long distances. Additionally, securing a shipyard along with skilled labor and supply chains broadens the capacity to handle regular maintenance and urgent repair needs.
HD Hyundai is also exploring options to establish a local presence to expand its naval business in the U.S. While it has not yet finalized any acquisitions, the company is keeping various avenues open and has been securing partnerships with local shipyards, equipment manufacturers, and investors to strengthen its U.S. operations.
Notably, HD Hyundai has formed a $5 billion Korea-U.S. shipbuilding investment fund with American private equity firm Servarus. A company representative stated, "Key investment targets include acquiring and modernizing U.S. shipyards, investing in equipment and supply chain companies, and developing advanced shipbuilding technologies such as autonomous navigation and artificial intelligence."
HD Hyundai is also expanding its collaboration with U.S. naval and defense firms. In April, it became the first South Korean company to secure a core research and development project from the U.S. Office of Naval Research (ONR) and is currently working with U.S. defense contractor Anduril on the development and market entry of unmanned surface vessels.
Samsung Heavy Industries is focusing on building a local workforce and technological foundation rather than directly acquiring a shipyard. Following the opening of the Korea-U.S. Shipbuilding Cooperation Center in July, the company has signed agreements and joint research contracts with U.S. firms in shipyard operations and vessel construction technology.
Additionally, Samsung Heavy Industries plans to establish a training center in the U.S. Northwest in partnership with its MRO partner, Vigor Marine Group. This center will serve as a facility to train welders and painters, essential for shipbuilding and repair. The advanced technologies and expertise in welding and painting that Samsung Heavy Industries possesses are expected to further solidify its presence in the U.S. market.
The actions of these companies are seen as strategic moves to penetrate the North American naval MRO market. Particularly in Canada, where defense and security regulations may restrict direct entry by foreign firms, collaboration with local shipyards or manufacturing licensing is being considered a viable strategy for market entry.
Lee Shin-hyung, head of the Department of Naval Architecture and Ocean Engineering at Seoul National University, stated, "The ability to quickly support vessels in need of maintenance is a core competitive advantage in naval MRO. The efforts of domestic shipbuilders to secure U.S. shipyards or build cooperative networks are ultimately strategies to establish a sustainable business foundation in the North American market."
* This article has been translated by AI.
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