Hanwha Ocean Wins Second Repair Contract for USN Support Ship
South Korean shipyard Hanwha Ocean is highlighting its growing relationship with the U.S. Navy and Military Sealift Command while also pointing to the support expressed by President-elect Donald Trump toward the South Korean shipbuilding industry. The yard won its second repair contract for a support ship while highlighting a second orderbook.
Hanwha Ocean announced on November 12 that it has won its second consecutive maintenance and repair order (MRO) since it signed a Master Ship Repair Agreement (MSRA) with the US Naval Supply Systems Command in July. It is part of the strategy to enhance both the maintenance business and build its relationship with the U.S. Navy.
The contract is for regular repairs to the 30-year-old USNS Yukon, a fleet replenishment vessel. Having entered service in 1994, the vessel which is 677 feet (206 meters) and 31,200 dwt has been assigned in the Pacific. She has supported a broad range of vessels for the U.S. Navy and is currently assigned to the U.S. Navy’s 7th Fleet. The ship will be in the South Korean shipyard till April 2025 for maintenance.
The yard is still undertaking repairs and maintenance on the USNS Wally Schirra, a dry cargo support ship. She arrived at the yard in South Korea on August 28 and is expected to be returned to operations by January 2025.
Executives from Hanwha hailed the contract as a further illustration of the deepening relationship between the U.S. Department of Defense and Korea. The executives also highlighted that President-elect Trump is “unusually supporting the K-maritime defense industry.”
They report that President Yoon Seok-yeol of South Korea and Trump had a good conversation after the U.S. election. They report Trump said, “The U.S. shipbuilding industry needs Korea’s cooperation.” They report Trump said he is aware of Korea’s warship construction capabilities and believes bilateral cooperation is necessary for both construction and maintenance.
Hanwha Ocean is awaiting U.S. approval to close its acquisition of the Philly Shipyard. It looks to expand its relationship into work with the U.S. Navy as well as attract additional maintenance work in South Korea.
The company is highlighting its strong performance in 2024 reporting on an individual shipyard basis it has had the highest order level in South Korea this year. Hanwha Ocean booked orders for 39 ships valued at nearly $7.9 billion. (HD Hyundai’s overall orders for all its shipyards were reported last week at 175 vessels valued at $19.5 billion in 2024.) Hanwha said it has more than doubled its orders versus 2023 when it took over Daewoo Shipbuilding & Marine Engineering (DSME). Hanwha points to its strategy of focusing on high-value-added vessels, such as LNG carriers, as it also looks to expand on its expertise in military systems.
The current Secretary of the Navy, Carlos Del Toro, has expressed support for building the relationship with South Korea’s industry. He called on the shipbuilders to invest in the U.S. and welcomed the investment in Philly Shipyard as he promoted his vision for Maritime Statecraft to support the U.S. Navy.