Hanwha heir discusses cooperation for naval ships' maintenance with US commander
Hanwha Group Vice Chairman Kim Dong-kwan, front row right, and Adm. Steve Koehler, front row center, the commander of the U.S. Pacific Fleet, tour the overhaul site of the USNS Wally Schirra at Hanwha Ocean's shipyard in Geoje, South Gyeongsang Province, Thursday. Courtesy of Hanwha Group
Hanwha Group Vice Chairman Kim Dong-kwan and the U.S. Pacific Fleet commander discussed a potential expansion of partnership between Hanwha's shipbuilding unit and the U.S. Navy for maintaining and repairing naval ships, the conglomerate said, Friday.
According to the group, Kim met Adm. Steve Koehler on Thursday at Hanwha Ocean's shipyard in Geoje, South Gyeongsang Province, and toured the USNS Wally Schirra, currently undergoing overhauls at the facility.
During the meeting, they discussed the possibility of further cooperation between the two sides on maintenance, repair and overhaul (MRO) services for U.S. Military Sealift Command deployed in the Indo-Pacific region.
In July, Hanwha Ocean signed a Master Ship Repair Agreement to start MRO businesses for the U.S. Navy. The company secured its first order to overhaul the USNS Wally Schirra, a 40,000-ton replenishment vessel. The ship is undergoing a four-month overhaul process at the Geoje shipyard and is scheduled to be delivered back to the U.S. Navy in January next year.
According to Hanwha Ocean, Kim told Koehler that the shipbuilder is improving its understanding of the MRO systems of U.S. naval ships through the Wally Schirra project. Kim also reaffirmed the company's commitment to providing reliable services in future MRO projects by optimizing its supply chain.
After inspecting the vessel, Kim and Koehler also toured Hanwha Ocean's facilities at the Geoje shipyard, including the submarine construction area, commercial ship and offshore plant construction zones and the digitized production facilities.
Koehler stressed that Hanwha Ocean's involvement in the maintenance of U.S. logistic support vessels in the Western Pacific marks an important advancement for the Korea-U.S. alliance, and noted that it is crucial to have a reliable partner for the operations of the Pacific Fleet.
As part of its strategy for the U.S. MRO and shipbuilding markets, Hanwha Group acquired Philadelphia-based Philly Shipyard for $100 million in June. Since its establishment in 1997, the shipyard has been supplying approximately 50 percent of large commercial vessels built in the U.S.
Kim noted that Hanwha Ocean seeks to expand its involvement in U.S. naval projects through the successful execution of MRO businesses and by aligning with the U.S. Department of Defense's Regional Sustainment Framework (RSF) plan.
Under the RSF, the United States plans to establish logistics and maintenance hubs in five Indo-Pacific countries, including Korea and Japan. Hanwha Group said it is focused on expanding its MRO business to cover a wide range of U.S. weapon systems for the Army, Navy and Air Force.
Hanwha Group Vice Chairman Kim Dong-kwan, center, applauds with Polish President Andrzej Duda, left, and Korea's Minister of Defense Acquisition Program Administration Seok Jong-gun during a demonstration of K9 self-propelled howitzer at Hanwha Aerospace's plant in Changwon, South Gyeongsang Province, Friday. Courtesy of Hanwha Aerospace
Also on Friday, Kim met Polish President Andrzej Duda at Hanwha Aerospace’s plant in Changwon, South Gyeongsang Province. Duda was welcomed to the Hanwha plant during his state visit to Korea, marking the first time for a foreign head of state to visit the company’s plant.
Duda and Kim toured the key production lines of the defense company and discussed ways to expand defense cooperation between Hanwha Aerospace and Poland. They observed the demonstration of more than 10 defense systems, including the K9 self-propelled howitzer that the company has been exporting to Poland since 2022.
Since exporting 120 units of the K9 in 2014, Hanwha has secured major contracts with Poland, including an 8.2 trillion won deal in 2022 for 212 K9 howitzers and 218 Chunmoo rocket launchers, followed by a 5.6 trillion won deal in 2023 for additional units.
During the visit, Kim introduced Hanwha Aerospace’s Redback infantry fighting vehicle and Hanwha Ocean’s KSS-III Batch-II submarine. Hanwha Ocean has proposed the submarine for Poland’s Orka program, which aims to acquire three submarines for the Polish Navy.
“Through license out and localization, Hanwha will cooperate (with Poland) to strengthen Poland’s defense capability as well as contribute to economic growth by pursuing joint exports to third countries,” Kim said.