On June 20, South Korea’s largest shipbuilding group HD Hyundai signed a strategic shipbuilding cooperation agreement with Edison Chouest Offshore (ECO) of the United States. The two sides will cooperate in the construction of medium-sized liquefied natural gas (LNG) dual-fuel container ships in the United States, which are expected to be completed by 2028.
Under the agreement, ECO is responsible for the construction of LNG dual-fuel powered container ships, while HD Hyundai will provide support by providing ship design support, equipment procurement services, construction technical assistance, and delivery of some hull sections, and will further contribute by investing in key technical assets. Through this cooperation, the two parties aim to gradually expand the scope of cooperation to other areas such as icebreakers, ships and cranes.
“The United States is a strong ally and an important business partner for us,” stated an official from HD Hyundai. “Through our collaboration with ECO, we aim to actively support U.S. efforts to revitalize its shipbuilding industry and strengthen national security.”
This move means that HD Hyundai continues to be committed to strengthening cooperation between the United States and South Korea in the field of shipbuilding and maritime transport. In July last year, HD Hyundai signed a memorandum of understanding (MoU) on educational cooperation with the University of Michigan and Seoul National University to cultivate talents in the shipbuilding industry; in April this year, it signed a commercial agreement with Huntington Ingalls Industries (HII), the largest defense shipbuilding company in the United States, and Fairbanks Morse Defense, a key supplier of defense-related equipment.
Clarksons data shows that US shipyards have only received orders for three 3,600TEU container ships from US shipowners from 2022 to 2024. The three Jones Act-compliant container ships were ordered by Matson Navigation and built by Hanwha Philly Shipyard at a total cost of US$1 billion.
To this end, ECO is seeking cooperation with HD Hyundai, a leading global shipbuilding company. HD Hyundai has agreed to establish a strategic partnership with ECO, recognizing that this cooperation will help it expand its business in the US market and strengthen its ties with key allies. Both sides expect that this cooperation will significantly enhance the competitiveness of the US in the global shipbuilding industry.
It is understood that Edison Chouest Offshore was founded in 1960 and is a US-based shipbuilding group that operates five commercial shipyards in the U.S. The company has a fleet of nearly 300 ships serving the offshore, research and national security sectors, with business covering ship design, new ship construction, port operations and subsea services, and has shipyards, manufacturing plants and port terminals throughout the Americas.
Recently, ECO and Bollinger Shipyards, the largest private shipbuilding/repair company in the United States, established the United Shipbuilding Alliance (USA) with the aim of accelerating the design, construction, and delivery of a new generation of icebreakers that directly meet the urgent operational needs of the Arctic region, thereby further enhancing the shipbuilding capabilities of the United States.
Bollinger Shipyards was founded in 1946 and is the largest ship repair company in the Gulf of Mexico region and one of the largest privately owned shipyards in the United States, specializing in the construction of patrol boats, salvage and research vessels, barges, offshore oil field support vessels, drilling platforms, lift ships, tugboats, and other steel and aluminum vessels. The company operates 11 shipyards and 22 dry docks in Louisiana and Mississippi.