Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Smaller shipyards set to join US shipbuilding cooperation
Alex Krutz, left, deputy assistant secretary for manufacturing at the U.S. Department of Commerce, poses with HJ Shipbuiliding & Construction (HJSC) CEO Yoo Sang-cheol at the company's shipyard in Busan, Nov. 11. Courtesy of HJSC
By Park Jae-hyuk
HJSC, SK Oceanplant, K Shipbuilding seek MRO orders from US Navy
Seoul and Washington’s proposed shipbuilding partnership is creating new business opportunities not only for the country’s three leading players, but also for Korea’s small and medium-sized shipbuilders.
After HD Hyundai Heavy Industries, Hanwha Ocean and Samsung Heavy Industries submitted prospectuses to the U.S. Department of Commerce for their participation in the so-called Make American Shipbuilding Great Again (MASGA) project, smaller shipbuilders also began preparing submissions, targeting maintenance, repair and overhaul (MRO) contracts for U.S. naval vessels.
HJ Shipbuilding & Construction (HJSC) expects to sign a master ship repair agreement (MSRA) with the U.S. Navy by the end of this year. This agreement is necessary for a civil shipyard to maintain and repair U.S. battleships.
Earlier this month, the company hosted Alex Krutz, deputy assistant secretary for manufacturing at the U.S. Department of Commerce, at its Busan shipyard. His visit came seven months after a visit by Rear Adm. Neil Koprowski, commander of U.S. Naval Forces Korea.
“U.S. government officials have visited our shipyard one after another to review our technological capabilities,” an HJSC official said. “Securing MRO orders will let us take a pivotal role in the MASGA project.”
Representatives of SK Oceanplant, Doosan Enerbility and STX Engine pose at SK Oceanplant's headquarters in Goseong County, South Gyeongsang Province, May 19, after signing a memorandum of understanding for their cooperation in maintenance, repair and overhaul works of Korean and U.S. naval vessels. Courtesy of SK Oceanplant
SK Oceanplant is another company poised to qualify for maintenance and repair work on U.S. naval vessels this year, following an on-site inspection by U.S. naval officers in September. In May, the company partnered with Doosan Enerbility and STX Engine for U.S. MRO projects.
“Our extensive experience in large vessel repair and naval shipbuilding will give us an edge in the U.S. naval vessel MRO market,” SK Oceanplant CEO Lee Seung-chul said.
K Shipbuilding organized a task force to pursue an MSRA with the U.S. Navy by the end of next year and invested in remodeling its docks for MRO operations. The company aims to leverage its proximity to Commander Fleet Activities Chinhae in Changwon, South Gyeongsang Province.
“Small shipbuilders can also profit from sales of equipment and components for U.S. naval ship construction,” a shipbuilding industry official said.
The government is moving to prevent smaller shipbuilders’ exclusion from the MASGA initiative.
“We will soon announce measures to enhance the Korean shipbuilding industry’s competitiveness, which will allow small and medium-sized shipyards and equipment suppliers to grow together,” said Park Dong-il, director general for industrial policy at the Ministry of Trade and Industry.