- Hanwha Ocean has secured its first contract from the US Navy to overhaul a 40,000-ton logistics support ship, one month after gaining a green light from the service to do such work.
- Hanwha’s statements do not disclose the value of the contract. The contract is the first of its kind to be won by a South Korean shipbuilder.
Hanwha Ocean has made a significant breakthrough by becoming the first South Korean shipyard to secure a maintenance, repair, and overhaul (MRO) contract with the U.S. Navy. This milestone was achieved after the company signed a Master Ship Repair Agreement (MSRA) with the U.S. Naval Supply Systems Command on July 22, following its application in January, reports Business Korea.
Hanwha Ocean secures historic U.S. Navy MRO contract
On February 27, U.S. Secretary of the Navy Carlos Del Toro visited Hanwha Ocean, where he was guided by company representatives to inspect the shipbuilding site and MRO capabilities. Del Toro described Hanwha Group’s recent acquisition of the Philadelphia Shipyard as “a groundbreaking event that changes the landscape of maritime power.”
Just two days later, on August 29, Hanwha Ocean announced that it had won a contract for the overhaul of a 40,000-ton U.S. Navy logistics support ship. This project, a regular overhaul of large U.S. Navy vessels, can only be performed by companies certified under the MSRA. Hanwha Ocean’s advanced ship technology and maintenance infrastructure received high marks from the U.S. Navy, enabling the company to secure the contract in about a month.
Hanwha Ocean will conduct maintenance and inspections on the entire U.S. Navy logistics support ship that docks at its Geoje shipyard. This entry into the U.S. Navy’s MRO market, estimated to be worth about $20 trillion annually, marks a significant stepping stone for the company. A Hanwha Ocean representative stated, “Entering the U.S. Navy maintenance market, which is expected to exceed $20 trillion annually, will be a significant stepping stone for a new leap forward.”
The project is expected to be delivered on time, showcasing Hanwha Ocean’s commitment to excellence and reliability. This contract not only highlights the company’s capabilities but also strengthens the strategic defense relationship between the United States and South Korea.
Hanwha Ocean’s recent acquisition of the Philadelphia Shipyard in the U.S. is a pivotal event that aligns with its broader business strategy. This acquisition, coupled with the MSRA certification, positions Hanwha Ocean as a formidable player in the global defense export market.
The U.S. Navy’s MRO market involves the maintenance, repair, and overhaul of various naval vessels, highlighting the strategic importance of this contract. The financial scope of this market, estimated to be worth about $20 trillion annually, underscores the significance of Hanwha Ocean’s entry.
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Source: Business Korea
