HHI and HII agree to collaborate on US Navy auxiliary shipbuilding

HD Hyundai Heavy Industries (HHI) and US-based Huntington Ingalls Industries (HII) have signed an agreement to jointly develop and build auxiliary ships for the US Navy, aiming to compete in the concept design phase of the next-generation logistics ship programme. The memorandum of agreement was signed in Gyeongju, South Korea, ahead of Asia-Pacific Economic Cooperation meetings, as both companies position themselves for expanding US naval procurement.

HHI has long experience supplying replenishment vessels, having delivered auxiliary ships to the Republic of Korea Navy, as well as the HMNZS Endeavour and HMNZS Aotearoa to New Zealand. The collaboration will combine HHI’s established designs with HII’s production experience in the US defence sector. The partners are also exploring joint investment in American shipyard infrastructure, including potential new construction sites or acquisitions of existing facilities.

In April this year, the companies signed an MoU to share practices aimed at reducing costs and shortening production schedules. HHI executives visited HII’s Ingalls Shipbuilding yard in Mississippi in October to advance technical cooperation. HHI has already been active in the US naval support market and began an overhaul of the USNS Alan Shepard in September.

The agreement comes amid wider discussions on expanding US shipbuilding capacity. South Korea has pledged USD 150 billion of investment into US shipyards, contingent on a broader trade agreement that remains under negotiation.