Hanwha Ocean Wins First US Navy MRO Project Among Korean Shipyards

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Hanwha Ocean has become the first domestic shipyard to win a contract for the maintenance of U.S. Navy vessels, pioneering a new market for K-maritime defense.

On the 29th, Hanwha Ocean announced that it had secured a contract for the overhaul of a 40,000-ton U.S. Navy logistics support ship.

This project is a regular overhaul for large U.S. Navy vessels, which can only be performed by companies certified under the Maintenance Ship Repair Agreement (MSRA), and it is the first time a domestic shipyard will undertake such a project.

Under this contract, the U.S. Navy logistics support ship will enter Hanwha Ocean’s Geoje facility for maintenance and inspection. In addition, land-based maintenance work using the shipyard’s floating facilities is also planned.

Through this contract, Hanwha Ocean has entered the U.S. Navy vessel MRO (Maintenance, Repair, Overhaul) market, which is worth approximately 20 trillion KRW annually, establishing a bridgehead for expanding global defense exports. MRO refers to operations involving maintenance, repair, and overhaul.

Hanwha Ocean Wins First US Navy MRO Project Among Korean Shipyards

On February 27, Carlos Del Toro, U.S. Secretary of the Navy, visited Hanwha Ocean to inspect the shipbuilding site and MRO capabilities.

Previously, on the 22nd of last month, Hanwha Ocean signed an MSRA with the U.S. Naval Supply Systems Command. The MSRA is a certification agreement that the U.S. government enters with shipyards that possess high-quality maintenance and technical capabilities. Having applied for MSRA in January, Hanwha Ocean significantly shortened the usual certification period?which typically takes more than a year?to just seven months, and secured the vessel maintenance contract in about a month. Hanwha Ocean’s advanced vessel technology and maintenance infrastructure were highly evaluated by the U.S. Navy.

Having acquired the official qualification to participate in MRO project bids for U.S. Navy vessels over the next five years, Hanwha Ocean plans to showcase its unrivaled vessel technology and systematic maintenance infrastructure through the timely delivery of this logistics support ship overhaul project.

Hanwha Ocean believes that this project, which the U.S. Navy is conducting as a pilot in Asia, will become a significant turning point for the U.S. Navy’s vessel MRO market. Along with the recent acquisition of the Philadelphia Philly Shipyard, Hanwha Ocean’s contract win is accelerating Hanwha’s entry into the U.S. Navy vessel business.

Carlos Del Toro, U.S. Secretary of the Navy, welcomed Hanwha Group’s acquisition of Philly Shipyard, calling it “a groundbreaking event that will change the landscape of maritime power.”

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

A Hanwha Ocean representative emphasized, “Entering the U.S. Navy maintenance business will serve as a major stepping stone for a new leap in the global vessel MRO market, which is expected to exceed 80 trillion KRW annually.”

They added, “We have conducted thorough prior preparations, research, and analysis, and by providing high-quality overhaul services on time, we will build trust with the U.S. Navy and secure reasonable profits. We also aim to contribute to the revitalization of the related industry by fostering win-win cooperation with small and medium-sized maintenance companies in the Busan and Gyeongnam regions.”

Hanwha Ocean is the only company with a construction record for all lineups (KDX-I, II, III) of destroyer projects currently operated by the Republic of Korea Navy, earning a reputation as a leader in the surface vessel sector.

Hanwha Ocean also announced its commitment to contribute to the successful Korean next-generation destroyer (KDDX) project, strengthening the naval power of the Republic of Korea Navy.