The Korea-US Shipbuilding Cooperation Center has begun operations in Washington, D.C., putting the $150 billion "MASGA (Make American Shipbuilding Great Again)" project on track. Korea's shipbuilding Big 3 — HD Korea Shipbuilding & Offshore Engineering (009540), Hanwha Ocean (042660), and Samsung Heavy Industries — have decided to move forward with building artificial intelligence (AI)-based smart shipyards, designing global strategic transport ships, and constructing liquefied natural gas (LNG) bunkering vessels with US companies. With the US side emphasizing ship production at local shipyards in anticipation of new jobs, additional investment is expected to take concrete shape.
According to the Ministry of Trade, Industry and Energy and others on the 24th, Korea's three shipbuilders signed 12 cooperation projects — "separately yet together" — building on the opening of the Korea-US Shipbuilding Cooperation Center held at the Mayflower Hotel in Washington, D.C. on the 23rd. Of a total of 15 mutual cooperation memorandums of understanding (MOUs) signed by the two countries covering shipbuilding industry supply chain cooperation, workforce training, and joint technology development, companies accounted for 80%. To strengthen friendly ties with US companies and partners, key executives including HD Korea Shipbuilding & Offshore Engineering CEO Kim Hyung-kwan, Hanwha Ocean President Jung In-sup, and Samsung Heavy Industries Vice Chairman Choi Sung-an all turned out.
Among the cooperation plans between companies from the two countries, the first to draw attention is the "next-generation marine platform adoption" contract signed by HD Korea Shipbuilding & Offshore Engineering and Siemens Digital Industries Software. HD Korea Shipbuilding & Offshore Engineering, the shipbuilding holding company of HD Hyundai Group, teamed up with Siemens DIS — which traces its roots to United Computing of the US — to jointly build digital solutions in next-generation design and production, focusing efforts on realizing a physical AI shipyard. This is expected to serve as a stepping stone for HD Hyundai Group to secure a US shipyard.
In addition, HD Korea Shipbuilding & Offshore Engineering will cooperate on yard productivity diagnostics and the application of automation technology to support the modernization of Fraser Industries, which operates a shipyard in the US, while its subsidiary HD Hyundai Samho will supply four latest port cranes to Washington United Terminals, which operates the Port of Tacoma in the US.
Hanwha Ocean, the first of the three shipbuilders to secure a shipyard in the US, signed a professional services contract with "Leidos Gibbs & Cox," known as a distinguished naval ship designer, for the joint design of global strategic transport ships. A global strategic transport ship is a strategic transport asset operated for commercial purposes such as logistics transport in peacetime and for high-speed transport of military materiel in emergencies. Hanwha Ocean is pursuing professional workforce training with Delaware County, Pennsylvania, and local supply chain development with the Philadelphia Chamber of Commerce through its local production base, Philly Shipyard.
Samsung Heavy Industries is pursuing joint development of unmanned surface vessels (USVs) with Saronic Technologies of the US, and with Conrad Shipyard, it decided to accelerate local joint construction based on obtaining Approval in Principle (AiP) basic design certification from the American Bureau of Shipping (ABS) for a 12,000 cubic-meter-class LNG bunkering vessel. In addition, Samsung Heavy Industries agreed with Vigor Marine Group, its local maintenance, repair, and overhaul (MRO) partner, to establish a state-of-the-art virtual and augmented reality (VR·AR)-based welding and painting training center in the northwestern US.
Korea's leading shipbuilders are taking the lead in reviving the US's declining shipbuilding industry because US President Donald Trump personally sent a love call, and to serve as a support force in negotiations to select US investment projects totaling $350 billion, including MASGA. Bilateral cooperation is maturing, with Samsung Heavy Industries winning a $2.8 billion order last month for the construction of the first unit of a floating liquefied natural gas production facility (FLNG) in Louisiana, US, and Hanwha Philly Shipyard winning an order this month to build a Missile Range Instrumentation Vessel (MRIV) for the US Missile Defense Agency (MDA).
However, the US side is also raising the intensity of pressure on the government and companies for swift implementation of US investment. US Commerce Secretary Howard Lutnick called for tangible results, saying, "Ultimately, it will be judged by the simple figure of the number of ships produced together in the US through Korea-US cooperation." Minister of Trade, Industry and Energy Kim Jung-kwan responded, "Korea is ready to become the US's strongest partner," adding, "We will also swiftly proceed with the $150 billion in shipbuilding cooperation investment."
