HD Hyundai Heavy Industries has become the first Korean company to sign a Master Ship Repair Agreement (MSRA) with the U.S. Naval Supply Systems Command, a groundbreaking achievement announced on July 11. This agreement allows the South Korean shipbuilding giant to bid on maintenance, repair, and overhaul (MRO) projects for U.S. Navy combat ships and Military Sealift Command support vessels over the next five years.
Securing the MSRA is essential for participation in U.S. naval MRO projects, marking a significant milestone in HD Hyundai Heavy Industries’ foray into the U.S. defense market. The application process, which began in May last year, involved stringent facility and quality inspections, security audits, and financial assessments completed by May this year.
In February, the company briefed U.S. Secretary of the Navy Carlos Del Toro on its technological capabilities and shipbuilding expertise during his visit to their Ulsan headquarters. This meeting showcased HD Hyundai’s potential to enhance U.S. naval operations.
The U.S. Navy’s MRO market, valued at approximately 20 trillion won (around $14.8 billion) annually, offers substantial business opportunities. HD Hyundai plans to use this agreement to extend its MRO market reach to Asia and South America, aiming to build trust with U.S. military authorities and secure future new construction projects.
Joo Won-ho, head of the Special Ship Business, highlighted the company’s MRO expertise and technological prowess. With a history of constructing 18 export ships and significant MRO experience in the Philippines, HD Hyundai is poised to enter the U.S. naval MRO market and expand K-ship exports.
The company’s achievements include establishing a logistics support center in the Philippines in 2022, demonstrating its commitment to global expansion. Their ongoing project to deliver the next-generation Aegis destroyer, “King Jeongjo the Great,” by the end of 2024, further underscores their advanced capabilities.
This MSRA agreement not only strengthens South Korea-U.S. defense relations but also enhances South Korea’s role in supporting U.S. naval operations, promising job creation and economic growth.
