- Multibillion-dollar MASGA program was launched to rebuild U.S. shipbuilding.
- Investments to cover shipyard modernisation, supply chains and AI technologies.
- HD Hyundai to act as anchor investor and technical advisor.
HD Hyundai made an exciting announcement on August 25, revealing that they’ve signed a memorandum of understanding (MOU) with Cerberus Capital and the Korea Development Bank (KDB) during the Korea-U.S. manufacturing partnership ceremony in Washington, D.C. This agreement paves the way for a multibillion-dollar joint investment initiative under the “MASGA” project, aimed at revitalising the U.S. shipbuilding industry, reports Business Korea.
Focus of the Investment Program
The investment program is set to focus on rebuilding and enhancing the maritime capabilities of the U.S. and its allies. Key areas of investment will include acquiring and modernising American shipyards, bolstering supply chains through investments in equipment manufacturers, and advancing shipbuilding technologies, particularly in artificial intelligence and autonomous navigation.
Roles of Each Partner
In this partnership, HD Hyundai will take on the role of anchor investor and technical advisor, leveraging its expertise to assess the technical feasibility, competitiveness, and growth potential of the investment targets. Cerberus Capital will be in charge of operating the program, overseeing investment strategies and their execution. Meanwhile, KDB will facilitate South Korean involvement by crafting investment structures and spearheading fundraising efforts.
Strategic Bilateral Cooperation
This initiative is the first tangible follow-up to the Korea-U.S. summit, advancing bilateral cooperation in shipbuilding. HD Hyundai Senior Vice Chairman Chung Ki-sun stated, “Our partnership with Cerberus Capital will not only provide substantial support to the MASGA project, which aims to revitalise shipbuilding in our ally, the United States, but also open new markets and growth opportunities for South Korea’s shipbuilding sector. HD Hyundai will leverage its accumulated shipbuilding expertise and digital capabilities to support the modernisation and advancement of U.S. shipbuilding while helping both countries open a new chapter in the global shipbuilding industry.”
Industry Leaders’ Remarks
Cerberus Capital CEO Frank Bruno added, “This program will play a key role in creating new opportunities by combining investment with operational and technical expertise. We are deeply grateful for the bipartisan efforts of President Trump and the U.S. Congress to rebuild the maritime industry, as well as South Korea’s bold investment and support for MASGA.”
KDB Senior Executive Vice President Kim Bock-kyu said, “The joint investment program promoted by HD Hyundai and Cerberus is a new model of cooperation in the shipbuilding industry and a product of deep trust and partnership between South Korea and the United States. The KDB will actively support the successful establishment of this program as a representative of South Korea’s financial sector.”
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Source: Business Korea
