South Korea’s Hanwha Ocean targets US business

Hanwha Ocean has taken steps to secure stronger ties with the US Navy for ship repair as well as commercial shipbuilding. The company recently signed a Master Ship Repair Agreement (MSRA) with the US Navy that will allow its Geoje Shipyard to provide shipbuilding and maintenance, repair, and overhaul (MRO) services to American naval vessels.

“Hanwha Ocean underwent a rigorous evaluation process in April to secure the MSRA certification for its Geoje Shipyard. The agreement qualifies the company to participate in MRO projects involving US Navy vessels,” Hanwha Ocean said in a statement, adding that the MSRA is only granted by the U.S. Navy to companies that fulfil stringent quality standards for ship maintenance services. 

This latest milestone comes on the heels of Hanwha Ocean and its sister organisation Hanwha Systems agreeing a USD 100 million acquisition of US-based Philly Shipyard from Norway’s Aker ASA. The deal, announced in July this year, is expected to conclude by the end of 2024 - subject to satisfaction of all closing conditions such as approval by CFIUS (Committee of Foreign Investments in the US) and other regulatory approvals.  The Philly Shipyard is responsible for a significant number of large US Jones Act commercial ships in the United States since 2000 and also constructs training vessels for the U.S. Maritime Administration (MARAD).

“The MSRA certification and the Philly Shipyard acquisition together will help Hanwha Ocean consolidate its reputation in the global naval shipbuilding market, demonstrating its MRO expertise and reinforcing its commitment to continuous technological innovation and quality improvements,” Hanwha Ocean added.