HD Hyundai Group, South Korea’s largest shipbuilding company, signed a memorandum of understanding (MOU) for the first time on the Korea-US shipbuilding cooperation project, “Make American Shipbuilding Great Again” (MASGA).
According to Korean media reports, during the South Korea-U.S. summit, HD Hyundai signed a MOU with the Korea Development Bank (KDB) and the U.S. private equity fund (Cerberus Capital) to deepen cooperation.
HD Hyundai plans to deepen Korea-U.S. shipbuilding cooperation starting with this MOU. One of the partners, Cerberus, owns the Subic Shipyard in the Philippines. Currently, HD Hyundai not only utilizes the shipyard’s facilities for shipbuilding operations but will also advance maintenance, repair, and overhaul (MRO) services for U.S. naval vessels.
Of particular note is that Hyundai Heavy Industries has expressed openness to investing in U.S. shipyards. Previously, the group reached an agreement with Edison Chouest Offshore to jointly build liquefied natural gas (LNG) dual-fuel container ships. It also signed a deal with Huntington Ingalls Industries (HII), the largest defense shipbuilding group in the U.S., pledging to collaborate on cost optimization and cycle reduction to further deepen its partnership with the American shipbuilding industry.
Previously, the South Korean government positioned the “MASGA” project as a key bargaining chip in trade negotiations with the United States, deciding to establish a shipbuilding cooperation fund through this institution and invest $150 billion (approximately one-third of its total investment in the U.S.).
As part of South Korea’s $150 billion investment fund commitment to support the U.S. shipbuilding industry, Hanwha Group has announced a $5 billion investment in Hanwha Philly Shipyard—acquired late last year—for infrastructure upgrades and has placed orders for 10 oil tankers and 2 LNG carriers with the facility.
According to the latest investment plan, Hanwha Philly Shipyard will construct two new dry docks and three berths to increase production capacity, while also evaluating the feasibility of building a new hull assembly workshop. Through this expansion, Hanwha Group aims to increase the shipyard’s annual production capacity from less than two vessels to 20. As a global leader in LNG carrier construction, Hanwha Group plans to build LNG carriers, naval modules, and hull sections at this U.S. facility, with long-term plans to construct U.S. naval vessels.