HD Hyundai Heavy Industries & HII to Partner on Distributed Shipbuilding and Auxiliary/Commercial Vessels

10/26/2025 – 06:00 AM

GYEONGJU, South Korea – Huntington Ingalls Industries (HII), a major player in U.S. shipbuilding, and HD Hyundai Heavy Industries (HHI), a South Korean shipbuilding giant, have forged a strategic alliance to enhance U.S.-Korea shipbuilding cooperation. The two companies signed a memorandum of agreement (MOA) on October 26, 2025, at the Asia-Pacific Economic Cooperation (APEC) 2025 forum, signaling a deeper integration of their capabilities and resources.

The agreement, attended by key executives including Joo Won-ho, president of HHI’s Naval & Special Ship Business Unit, and Eric Chewning, HII’s executive vice president of maritime systems and corporate strategy, focuses on four core areas:

• Distributed Shipbuilding and Joint Investments: Exploring opportunities to bolster the U.S. shipbuilding industrial base through collaborative investments and flexible ship construction methods.
• Navy Auxiliary Shipbuilding: Pursuing strategic partnerships for U.S. Navy auxiliary shipbuilding programs, leveraging the combined expertise of both companies.
• AI/ML, Robotics, and Automation: Jointly developing engineering, research & development, and technology implementation best practices in advanced technologies like artificial intelligence, machine learning, robotics, and automation.
• In-Theater Ship Lifecycle Support: Strengthening U.S. Navy Indo-Pacific in-theater ship lifecycle support, crucial for maintaining a robust naval presence in the region.

“This agreement marks the beginning of a deeper collaboration, promising enduring changes to both military and commercial shipbuilding in America,” stated Chewning. He also emphasized the commitment to transforming the U.S. shipbuilding industrial base and accelerating throughput in shipyards, working closely with HHI, the U.S. and South Korean governments, and their customers. The partnership is expected to leverage HHI’s expertise in commercial shipbuilding and HII’s experience with U.S. Navy contracts.

Adding momentum to the collaboration, HII and HHI intend to jointly pursue the U.S. Navy’s next-generation logistics ship (NGLS) design contract. By combining HII’s expertise in complex shipbuilding with HHI’s proven designs already in service with the Royal New Zealand and South Korean navies, the two companies aim to deliver a compelling solution to the U.S. Navy’s recent request for proposal (RFP) for the NGLS program’s concept design phase.

HHI President Joo Won-ho highlighted the strategic importance of the partnership, stating, “Through joint participation in U.S. Navy procurement programs and investments, aimed at establishing ship production bases in the U.S., the two nations are taking a major step toward deeper strategic collaboration.” He emphasized that the partnership would generate powerful synergies by combining Korea’s cutting-edge shipbuilding technologies with the U.S. defense sector’s strong market competitiveness.

HHI brings a strong track record in auxiliary vessel construction, having delivered HMNZS Endeavour to New Zealand in 1987 and HMNZS Aotearoa in 2020. The company has also supplied the Republic of Korea Navy with various Cheonji-class and Soyang-class auxiliary ships.

The MOA follows previous collaborations , including an April agreement to share best practices in cost efficiency and construction schedules, as well as exploring expanded U.S. shipbuilding capacity. In early October, HHI executives and engineers visited HII’s Ingalls Shipbuilding yard in Mississippi to foster greater collaboration. Furthermore, HHI began overhaul work on the U.S. Navy’s USNS Alan Shepard in September, further solidifying the partnership.

Analysts believe this partnership could provide HII with access to HHI’s advanced shipbuilding techniques and technologies, potentially leading to increased efficiency and reduced costs. For HHI, the MOA offers a pathway to expand its presence in the U.S. defense market, one of the largest and most lucrative in the world. However, the partnership also faces potential challenges, including navigating U.S. regulatory hurdles and integrating different shipbuilding cultures. The agreement’s ultimate success will depend on the two companies’ ability to effectively collaborate and execute on their shared objectives.

HII, headquartered in Virginia, is a global all-domain defense provider with a workforce of 44,000. HHI is the world’s leading shipbuilder, holding roughly a 10% share of the global market and having delivered over 2,300 ships to 335 shipowners in 51 countries by 2023.