Hanwha Ocean enters the MRO market for US naval vessels and positions itself as a market leader in South Korea’s maritime defense sector. Expansion into the global defense market is expected following the acquisition of Philly Shipyard and the recent MRO contract win.
Press release from Hanwha Ocean
Hanwha Ocean announced that it has won a contract to overhaul a 40,000-ton dry cargo and ammunition ship for the U.S. Navy, making it the first South Korean shipyard to receive a ship maintenance, repair and overhaul (MRO) contract from the U.S. Navy.
This project is a regular overhaul of a large U.S. Navy ship, a task that can only be undertaken by companies that have a Master Ship Repair Agreement (MSRA).
Under the contract, the U.S. Navy ship will dock at Hanwha Ocean’s Geoje shipyard, where it will undergo comprehensive maintenance and inspection, as well as overhaul work onshore using the shipyard’s floating shipbuilding facilities.
With this contract, Hanwha Ocean has entered the MRO market for U.S. Navy ships, marking a significant entry into the global maritime defense market.
On July 22 Hanwha Ocean signed the MSRA with the US Navy’s Naval Supply Systems Command (NAVSUP)Hanwha Ocean applied for the MSRA in January, shortening the usual certification period, which normally takes over a year, to just seven months.
Approximately one month after receiving the MSRA, Hanwha Ocean secured the overhaul contract for the vessel. This success reflects the U.S. Navy’s recognition of Hanwha Ocean’s shipbuilding technologies and MRO infrastructure.
Hanwha Ocean is eligible to bid for MRO projects for U.S. Navy-designated ships over the next five years and plans to showcase its unique naval vessel technologies and systematic MRO infrastructure to the U.S. Navy through the timely completion of the overhaul project.
Hanwha Ocean views this project, a pilot initiative of the U.S. Navy in the Asia region, as a pivotal moment that could reshape the MRO market for U.S. naval vessels.
The recent acquisition of Philly Shipyard in Philadelphia and this contract strengthen Hanwha Ocean’s entry into the U.S. Navy shipbuilding sector.
Carlos Del Toro, Secretary of the US Navy, praised Hanwha Group’s acquisition of Philly Shipyard, stating: “Hanwha’s acquisition of Philly Shipyard is a groundbreaking milestone in our new maritime statesmanship.”
This contract was concluded with the active support of the Ministry of Defense and the Defense Acquisition Program Administration of the Republic of Korea and is considered the result of the close defense cooperation between South Korea and the United States.
“This contract to overhaul a U.S. Navy ship is a milestone in the global ship MRO market, which is expected to reach a volume of over $60 billion per year,” said a Hanwha Ocean official. “Through thorough preparation, we can provide timely, high-quality overhaul services, building the confidence of the U.S. Navy.”