HII and HD Hyundai Heavy Industries Sign MOU to Boost Military and Commercial Shipbuilding

HII and HD Hyundai Heavy Industries (HHI) have entered into a memorandum of understanding at the Sea Air Space expo in Maryland to enhance cooperation in both military and commercial shipbuilding. This agreement between HII-America’s largest military shipbuilder – and HHI, a global leader in ship construction, marks a significant step in bolstering the maritime industries of the United States and South Korea.

Brian Blanchette, HII’s Executive Vice President, emphasized that the deal underscores their commitment to expanding US shipbuilding capacity in support of national security. The collaboration is expected to boost technological advancements and production efficiency by tapping into the expertise of both companies.

Won-ho Joo from HHI also highlighted that the partnership will expand their shipbuilding proficiency and deliver greater value to their customers.

HHI, which holds a 10 % market share and has delivered over 2 300 ships as of 2023, is a licensed defense contractor for the Korean Navy, specializing in advanced surface vessels, submarines, and support ships. This partnership comes on the heels of strengthened U.S.-Korean maritime ties, exemplified by Hanwha Ocean’s recent milestone in servicing a US Navy vessel – a first for a Korean shipyard.

The agreement also aligns with broader US government initiatives aimed at revitalizing domestic shipbuilding, which include plans for a new White House office focused on shipbuilding and tax incentives for American builders. These efforts follow an investigation that revealed China’s competitive maritime practices and a decline in US shipbuilding output compared to China’s substantial production. Moreover, the initiative echoes former Navy Secretary Carlos Del Toro’s Maritime Statecraft strategy, which advocated for expanded partnerships with domestic and allied shipbuilders to counter China’s influence in global shipbuilding.