Competition Grows for U.S. MRO Jobs as Third Korean Group Targets Work

Competition continues to grow among the shipyards as the U.S. moves to expand its use of foreign shipyards for the maintenance, repair, and overhaul (MRO) contracts. Viewed as a lucrative market, Korea’s mid-sized builder HJ Heavy Industries reports it plans to enter the competition after forming an “MRO Cluster Council,” to realize opportunities in the sector.

HJ Heavy Industries notes it has been building and repairing vessels for the maritime defense industry since 1974, completing work on over 1,200 ships. It estimates the value of the market for U.S. Navy-related MRO at $14.5 billion, with additional opportunities elsewhere internationally.

The shipyard has established a cluster including local shipbuilding and equipment companies to promote the MRO opportunities. It has brought together 10 companies from the region around Busan and Gyeongnam, which it says represent key elements of the work. It includes block manufacturing, various steel structures, ship parts, piping, and electrical equipment suppliers. 

The company notes that more vendors are seeking to enter the space as subcontractors and suppliers. It plans to compete for contracts and can also support the other major shipyards in executing contracts. It expects that if it is successful in completing a U.S. Navy Ship Maintenance and Repair Agreement (MRSA), it will be able to accelerate its entry into the overseas markets in general.

HD Hyundai Heavy Industries was the first to successfully achieve certification for the program in 2024, but was quickly followed by Hanwha Ocean. Korea’s Chosun Business reports Hyundai’s docks were occupied in 2024, so it first began competing in 2025, but so far has not won contracts, likely due to higher pricing. The outlet says the projects are smaller in scale and do not require high levels of technology, making them more price sensitive than other work.

Hanwha Ocean has succeeded quickly in the space, winning two contracts in the second half of 2024, and recently a third project, which is expected to start in the coming weeks. Chosun Business reports the U.S. has only bid a total of four projects, with Hanwha Ocean winning three and the fourth going to ST Engineering in Singapore. HD Hyundai reportedly bid for and lost two projects in 2025. Japanese yards are also said to be bidding for the contracts.

Korea looks to leverage its deep expertise in shipbuilding and reports it is well-positioned to help the Trump administration meet its goals to expand the U.S. Navy and improve the execution of repairs and overhauls. The Korean yards also expect to increase business as the USTR moves forward with its plans to impose fees on Chinese-built ships in an effort to break China’s dominance in global shipbuilding.