South Korean shipbuilder wins U.S. Navy repair contract

South Korea’s HD Hyundai Heavy Industries has secured a maintenance, repair, and overhaul (MRO) contract for a U.S. Navy logistics support ship—its first such award following the recent U.S.-Korea shipbuilding tariff negotiations.

According to a statement released by HD Hyundai Heavy on August 6, the company will carry out scheduled maintenance on the USNS Alan Shepard, a 41,000-ton dry cargo and ammunition vessel assigned to the U.S. Seventh Fleet.

Work is set to begin next month near the company’s HD Hyundai Mipo dockyard in Ulsan, with delivery to the U.S. Navy planned for November.

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The Alan Shepard, named after the first American astronaut to travel into space, was commissioned in 2007. The vessel is approximately 210 meters long, with a beam of 32 meters and a height of 9.4 meters.

The maintenance package will include propeller cleaning, tank inspection and servicing, and system diagnostics. This is the first MRO contract won by HD Hyundai since the company entered the U.S. market last year, and it follows the Korean government’s proposal of the MASGA initiative—a maritime cooperation framework between the two countries.

“This MRO award is the first since the MASGA proposal, and it carries strong meaning,” said Joo Won-ho, head of HD Hyundai Heavy’s Special Ship Division. “As one of South Korea’s leading shipbuilders, we will complete the U.S. Navy logistics support vessel project to the highest standard.”

Earlier this year, HD Hyundai signed a memorandum of understanding with Huntington Ingalls Industries, the largest defense shipbuilder in the United States, focused on boosting productivity and shipbuilding technology cooperation. The company also entered a strategic partnership with Edison Chouest Offshore for commercial shipbuilding in the U.S. market.

In addition to industry partnerships, HD Hyundai has been active in academic engagement. In June, it hosted a forum on bilateral shipbuilding cooperation, drawing faculty from the University of Michigan, MIT, and other leading U.S. maritime engineering institutions.

The latest contract follows multiple MRO wins by fellow South Korean shipbuilder Hanwha Ocean. In the past year, Hanwha secured three MRO projects involving U.S. Navy logistics vessels, including the USNS Wally Schirra and USNS Yukon. The most recent award, for maintenance work on the USNS Charles Drew, was announced in early July.

HD Hyundai previously stated that it expected to participate in two or three pilot MRO projects for the U.S. Navy in 2024. The new award confirms that projection and may pave the way for future deals.

The Alan Shepard project is now viewed as an early test case for South Korea’s broader shipbuilding presence in the American defense market. The success of this program could influence the pace and depth of future industrial cooperation under the evolving U.S.–Korea maritime strategy.

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