Production Expansion Cooperation Formalized at MADEX
Unveiling of Future Warships and Manned-Unmanned Integrated Systems
Emphasis on the Need for "Strategic Partner" Status
In response to the expanding U.S. shipbuilding and defense market, HD Hyundai has unveiled a blueprint to position itself as a strategic partner that goes beyond simple naval vessel production cooperation to encompass maintenance, repair, and overhaul (MRO) as well. This move is interpreted as a demonstration of the company's willingness to take a leading role as an ally in the restoration of the U.S. shipbuilding industry.
On May 28, HD Hyundai announced that it is accelerating cooperation to expand the production of Arleigh Burke-class Aegis destroyers in accordance with the Memorandum of Understanding (MOU) for "Enhancing Shipbuilding Productivity and Advanced Shipbuilding Technology Cooperation" signed with Huntington Ingalls, the largest defense shipbuilder in the U.S., at the "2025 International Maritime Defense Industry Exhibition (MADEX 2025)" held at BEXCO in Busan. Choi Taebok, Executive Director of External Cooperation at HD Hyundai Heavy Industries' Special Ship Division, stated, "We plan to cooperate in expanding Huntington Ingalls' production capacity by two to three times its current level."
Model of the next-generation Korean Aegis destroyer (KDDX) for which HD Hyundai Heavy Industries has completed the basic design. Photo by Seongpil Jo
Currently, the U.S. Navy aims to procure three Aegis destroyers (9,800 tons) per year in the future. This is intended to counter China. As of 2023, China, leveraging its shipbuilding industry, has strengthened its naval power and now possesses 370 vessels, surpassing the United States, which has 296 vessels. However, due to factors such as the aging of the U.S. shipbuilding industry, its annual Aegis destroyer construction capacity remains at only 1.6 ships.
HD Hyundai Heavy Industries is the only domestic shipbuilder capable of directly designing and constructing Aegis destroyers. It has built five out of the six Aegis destroyers operated by the Republic of Korea Navy. Executive Director Choi emphasized, "HD Hyundai Heavy Industries can deliver Aegis destroyers in 67% of the construction period and at 48% of the construction cost compared to the U.S. No other shipyard in the world possesses such capabilities except HD Hyundai Heavy Industries."
At this year's MADEX, which opened on May 28, HD Hyundai's vision for future naval platforms was further detailed, going beyond simple shipbuilding capabilities. HD Hyundai showcased the "HCX-25," an evolved version of its future warship concept "HCX Series," as well as the "Mobile Unmanned Power Control Ship," an AI-based flagship integrating both manned and unmanned forces (command ship), the "Next-Generation Unmanned Power Carrier," and the "Combat Unmanned Surface Vehicle (USV)" series, highlighting its position as a leading developer of maritime manned-unmanned integrated systems. Additionally, the company displayed the next-generation Korean destroyer (KDDX), which is being developed based on the self-designed and constructed King Jeongjo-class Aegis destroyer, the lead ship of the Ulsan-class Batch-III, ROKS Chungnam, and its independently developed offshore patrol vessel.
HD Hyundai Heavy Industries is also making visible progress in entering the U.S. MRO sector. It is reported that the company has participated three times in the U.S. Navy's MRO bids, which began in February. The company explained, "Like ships, MRO requires predictable volumes to secure the necessary workforce and facilities," adding, "For this reason, we have conveyed to the U.S. side that, rather than simple competitive bidding, a 'number one' level of strategic partnership with guaranteed regular volumes is necessary."
This strategy is attracting even more attention as it aligns with recent legislative changes such as the "Shipbuilding Industry Revitalization Act" being pursued by the U.S. Congress and the next administration. There is a growing trend in the U.S. to institutionalize the role of overseas allies to supplement domestic shipbuilding infrastructure. An HD Hyundai official stated, "For the restoration of the U.S. shipbuilding industry, it is necessary to recover not only production capacity but also the entire supply chain, including design, research, and workforce development," adding, "HD Hyundai is ready to support this through a long-term partnership."
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