Hanwha Ocean Aims for Faster US Naval Shipbuilding
- Mingi Hyun
- May 6
- 2 min read
In an interview with Reuters, Hanwha executive provides a glimpse into how it intends to seek a larger role in the US naval shipbuilding market
Reuters published an interview with Steve SK Jeong, Head of Naval Ship International Business Development at Hanwha Ocean. The interview primarily dealt with Hanwha’s pursuit of US Navy (USN) contracts, and provides some new information and numbers, as outlined below this paragraph. Hanwha is one of two South Korean naval shipbuilders looking to secure US Navy MRO and shipbuilding contracts. HD Hyundai Heavy Industries is the other.
USN MRO Business
By 2030, Hanwha aims to win “double-digit number” of USN MRO contracts. Though Jeong admits the MRO business isn’t the most profitable, he did see value in Hanwha’s opportunity to familiarize itself with the USN’s work processes, which he believes would pay dividends if Hanwha does end up securing USN shipbuilding orders in the future. On a side note, Jeong claims Hanwha may be the largest shipyard in the world that renders MRO services for the USN.
Building Naval Vessels in the US
Philly Shipyard, which Hanwha acquired in 2024, has been trying to obtain a license to build USN vessels. In the meantime, Hanwha is trying to ramp up its capabilities at Philly by modernizing infrastructure and training/educating the work force, as well as integrating its manufacturing processes. In so doing, Hanwha hopes to build naval vessels faster (i.e. “two-thirds the time or less”) than existing US shipyards. Though not mentioned in this article, please note that Hanwha has been targeting multiple US shipyards.
Ex-US Opportunities
By 2030, Hanwha plans to increase its annual revenue from naval ship exports to KRW 4 trillion (USD 2.9 billion) by pursuing opportunities in the likes of MENA, LATAM, and South-East Asia. By 2029, Hanwha plans to expand naval shipbuilding capacity in South Korea, so that it can build on an annual basis three surface vessels and five submarines.
The article mentioned, “…Hanwha Ocean has only actively competed for overseas orders in the last few years….” While this is true, here’s a related fun fact. Hanwha Ocean’s former entity, Daewoo Shipbuilding & Marine Engineering (DSME), was South Korea’s first-ever shipbuilder to export a naval vessel, when it signed a contract to build a frigate for Bangladesh in 1998. Here’s a photo of the ship, the 2,000-ton BNS Bangabandhu:
