May 05, 2024

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Joo Won-ho (right), head of HD Hyundai Heavy Industries' special ship business unit, and Steinar Nerbovik, CEO of Philly Shipyard, sign a memorandum of understanding in Pennsylvania on April 12. (HD Hyundai)

HD Hyundai Heavy Industries and Norway's Philly Shipyard signed a memorandum of understanding to collaborate on manufacturing, maintaining, repairing, and overhauling vessels and ships ordered by the US government, the South Korean shipbuilder said Wednesday.

The signing ceremony was held at Philly's shipyard in Philadelphia, Pennsylvania, on April 12 -- with key officials from both companies in attendance, including Joo Won-ho, head of HD Hyundai Heavy Industries’ special ship business unit, and Steinar Nerbovik, CEO of Philly Shipyard.

Under the agreement, HD Hyundai will design vessels and government ships, and provide materials for Philly Shipyard.

The two shipbuilders also intend to extend their collaboration to vessels and government ships for the US Navy, Coast Guard, and Maritime Administration, HD Hyundai said.

Philly Shipyard is a subsidiary of Aker ASA, a Norwegian company specializing in ocean, offshore wind power and energy businesses, and was established in 1997 at the site of the former Philadelphia Naval Shipyard in Pennsylvania.

The Norwegian shipbuilder has manufactured over half of the large-size merchant vessels in the US. Its primary focus lies in shipbuilding as well as vessel maintenance, repair and overhaul, or simply MRO, services for government and military needs.

The relationship between HD Hyundai and Philly Shipyard has continued since 2005, with the Korean shipbuilder supplying blueprints and materials to Philly Shipyard.

“Through this cooperation opportunity with a local company in the US for vessel and government ship manufacturing, as well as MRO businesses, we anticipate enhancing the influence of HD Hyundai in the global defense industry,” Joo said.

Nerbovik also showed high expectations for collaboration with HD Hyundai, stating, “Philly Shipyard and Hyundai Heavy Industries have a long and gratifying history of working together. We are honored by the prospect of future cooperation on opportunities for US government and commercial shipbuilding projects.”

HD Hyundai also boasts strategic partnerships with other American defense companies, GE Aerospace and L3Harris, for developing vessel propulsion systems, MRO services for US military vessels, and bidding on vessel projects in Australia and Canada.

By Hwang Joo-young (flylikekite@heraldcorp.com)
The Korea Herald