HD KSOE, US firm sign MOU on shipyard revitalization

HD Korea Shipbuilding & Offshore Engineering (HD KSOE) President and Chief Executive Officer Kim Hyung-kwan, left, poses with Fraser Industries LLC CEO Patrick V. Kelly in Washington, D.C., July 23, after signing a memorandum of understanding (MOU) on shipyard modernization. Courtesy of HD Korea Shipbuilding & Offshore Engineering

HD Korea Shipbuilding & Offshore Engineering (HD KSOE) said Thursday it has signed a memorandum of understanding (MOU) with a U.S. company to help revitalize the U.S. shipbuilding industry under Seoul's "Make American Shipbuilding Great Again" (MASGA) initiative.

HD KSOE and Fraser Industries LLC recently inked the agreement in Washington to provide an integrated package of shipyard design and construction expertise, operational systems and data management capabilities, the companies said in a press release.

Fraser Industries said the partnership would serve as an important starting point for revitalizing the U.S. shipbuilding industry, according to the release.

"We plan to provide the know-how needed from shipyard design through operations to support Fraser Shipyards in becoming a hub for rebuilding the U.S. shipbuilding industry," HD KSOE President and Chief Executive Officer Kim Hyung-kwan also said.

The two companies plan to sign a contract later this year for a shipyard modernization consulting program and use Fraser Shipyards, located on the shores of Lake Superior, as a demonstration project for revitalizing the U.S. shipbuilding industry.

MASGA, short for "Make American Shipbuilding Great Again," is Seoul's initiative to support the U.S. shipbuilding industry. The program was one of the key elements that helped Korea reach a tariff agreement with the United States last year.

Under the initiative, Seoul has agreed to invest $150 billion to help revitalize the U.S. shipbuilding industry as part of a broader $350 billion investment commitment to the United States.

HD KSOE is a subholding company of HD Hyundai, Korea's leading shipbuilding group.