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HD Hyundai wins another US Navy order to overhaul auxiliary ship

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The USNS Cesar Chavez is at sea in this undated photo. Courtesy of U.S. Navy Military Sealift Command

The USNS Cesar Chavez is at sea in this undated photo. Courtesy of U.S. Navy Military Sealift Command

HD Hyundai Heavy Industries (HHI) has secured another order to overhaul a U.S. Navy auxiliary ship, challenging Hanwha Ocean’s lead in contracts for the maintenance, repair and overhaul (MRO) of American naval vessels.

The Ulsan-based shipbuilder said Wednesday that it recently won an order for a regular overhaul of the USNS Cesar Chavez, a 41,000-ton dry cargo ship assigned to the U.S. 7th Fleet.

The 210-meter-long vessel will undergo a comprehensive overhaul of about 100 components starting Jan. 19, with delivery to the U.S. Navy set for March.

“Building on our unmatched technology and expertise, we successfully completed our first MRO project for a U.S. Navy vessel,” said HD HHI President Joo Won-ho, who heads the Naval and Medium-Size Shipbuilding Business Unit. “Since launching the unit, we have continued to strengthen our capabilities and efficiency to lead the U.S. naval ship MRO market.”

The USNS Alan Shepard sails off the coast of Ulsan, Tuesday, after getting a regular overhaul at HD Hyundai Heavy Industries' shipyard in the city. Courtesy of HD Hyundai

The USNS Alan Shepard sails off the coast of Ulsan, Tuesday, after getting a regular overhaul at HD Hyundai Heavy Industries' shipyard in the city. Courtesy of HD Hyundai

This marks HD HHI’s second MRO contract with the U.S. Navy. Rival shipbuilder Hanwha Ocean has so far secured three such orders.

HD HHI completed a four-month overhaul of the USNS Alan Shepard late last year and returned the ship to service Tuesday. Although the U.S. Navy initially requested work on 60 components, the company discovered additional repairs were necessary, extending both the project timeline and costs.

Meanwhile, both SK Oceanplant and HJ Shipbuilding & Construction recently underwent a U.S. Navy port facility security assessment, a prerequisite for signing a Master Ship Repair Agreement. Such agreements are required for privately owned shipbuilders to enter the U.S. naval vessel MRO market.