- Hanwha Ocean forms MRO Cluster Council with 15 South Korean firms to support US Navy maintenance needs.
- Council aims to boost MRO capacity, streamline market entry, and enhance operational readiness.
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Two US Navy contracts secured, with 5–6 more expected in 2025.
To meet rising demand from the US Navy, Hanwha Ocean has signed a memorandum of understanding with 15 local shipyards and maintenance‑equipment suppliers—among them HSG Sungdong Shipbuilding and SK Ocean Plant—to create an MRO Cluster Council. The council’s mission is to develop competitive business models, streamline market entry both domestically and abroad, secure robust supply chains, shorten project lead times, reduce risk, and enhance overall MRO performance and vessel availability. Most partner companies are based in Busan and Geoje, South Gyeongsang Province, and will collaborate with Hanwha Ocean from the earliest contract stages onward.
Strategic Focus and Capacity Building
Hanwha Ocean emphasizes that the MOU is designed to expand capacity to support the US Navy’s requirements and to elevate the competitiveness of each partner. By pooling resources and expertise across the council, all members aim to deliver faster, safer, and more cost‑effective maintenance, repair, and overhaul services, cementing the region’s reputation as the Indo‑Pacific’s leading naval MRO centre.
Rapidly Growing Naval MRO Market
According to Hanwha Ocean’s market analysis, the global naval vessel MRO industry was valued at ₩78.7 trn ($55.7 bn) in 2024 and is projected to reach ₩86.7 trn by 2029. The council’s formation directly addresses this growth trajectory by lining up the industrial capacity and technical know‑how needed to capture more than its share of the expanding market.
Early Contract Wins and Future Prospects
Hanwha Ocean has already secured two significant US Navy contracts: pre‑repair work on the USNS Yukon (IMO 8822454)—handled at a leased Geoje shipyard—and the historic maintenance of USNS Wally Schirra (IMO 9345116), the first such award to a South Korean firm. The company expects to win an additional five to six MRO projects this year, underscoring its rapid ascent in the US defence support arena.
Corporate Reorganization and Regional Strategy
While accelerating its US‑focused MRO business, Hanwha Ocean has simultaneously dissolved its Chinese subsidiary, DM‑CMHI Heavy Industry (now rebranded Hanwha Offshore Singapore), a move unrelated to geopolitical pressures. That unit—originally a 2020 JV between Dyna‑Mac and China Merchants Heavy Industry—was acquired by Hanwha Group in 2024. Hanwha Ocean officials note that the subsidiary’s dissolution was initiated by its management before the acquisition and does not reflect any strategic pivot away from shipbuilding or energy projects in Asia.
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Source: Lloyd’s List
