HJ Heavy Industries Passes Final Stage of U.S. Navy MSRA... Signing Expected in January

Final Review Stage at Yeongdo Shipyard: "Port Facility Security Assessment" Completed

HJ Heavy Industries has passed the final stage of the U.S. Navy's Master Ship Repair Agreement (MSRA).

HJ Heavy Industries announced that the last review for the upcoming MSRA with the U.S. Navy, the "Port Facility Security Assessment," was completed without issue on January 5, and the company expects to sign the license within January.

The Master Ship Repair Agreement (MSRA) is an agreement between the U.S. government and shipbuilding companies for the maintenance, repair, and overhaul (MRO) of U.S. Navy vessels. Shipyards that enter into this agreement are qualified to bid for MRO projects for U.S. Navy vessels, including those for combat ships, where strict security regulations apply.

Last year, HJ Heavy Industries applied for the MSRA license with the U.S. Navy's Naval Supply Systems Command (NAVSUP). In September of the same year, seven representatives-including a deputy commander, quality assurance officer, and marine surveyor from the U.S. Navy's Naval Sea Systems Command (NAVSEA)-visited the HJ Heavy Industries Yeongdo Shipyard for the first on-site inspection as part of the qualification review.

The "Port Facility Security Assessment (PA)" conducted on January 5 at HJ Heavy Industries' Yeongdo Shipyard in Busan is an official procedure in which the U.S. evaluates the security readiness and implementation of port facility security rules at foreign ports. This is the final step required for the MSRA.

The assessment team, composed of security experts from the U.S. Naval Criminal Investigative Service (NCIS), conducted an on-site inspection at the Yeongdo Shipyard, thoroughly checking procedures and implementation regarding counter-terrorism measures, security regulations, facility control, surveillance systems, and technical information management.

During the on-site inspection for the Port Facility Security Assessment, HJ Heavy Industries explained the current status of the Yeongdo Shipyard facilities, records of building Republic of Korea Navy vessels and Coast Guard patrol ships, MRO project experience, internal security regulations, and actual operational status. It is reported that the assessment team evaluated the company as the optimal shipyard to carry out MRO projects for the U.S. Navy.

An industry official said, "The first on-site inspection in September last year verified our ability to carry out U.S. Navy MRO projects, and this second on-site inspection reviewed our compliance with security regulations and operational practices as a defense contractor. With all verification procedures completed, we expect to sign the MSRA within January."

In mid-December, HJ Heavy Industries secured the MRO project for the U.S. Navy's logistics support ship, the Amelia Earhart, and will begin work soon. With the signing of the MSRA, related security procedures will be streamlined, and the company is expected to fully enter the MRO business for U.S. Navy combat ships, which require advanced information control.

In November last year, Alex Krutz, Deputy Assistant Secretary of the U.S. Department of Commerce, and his delegation visited the Yeongdo Shipyard to discuss cooperation ranging from naval MRO projects to commercial shipbuilding. If the Korea-U.S. MASGA project moves forward in the future, HJ Heavy Industries' role is also expected to gain momentum.