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Key developments include the acquisition of a manufacturing facility in Goose Creek, South Carolina for submarine modules and aircraft carrier units, and partnerships with six different shipbuilding partners for Arleigh Burke-class destroyer construction. The company has also formed international partnerships with Hyundai Heavy Industries and Babcock International Group to enhance production efficiency.
Tra i principali sviluppi c’è l’acquisizione di un impianto produttivo a Goose Creek, South Carolina per moduli sottomarini e unità per portaerei, oltre a collaborazioni con sei diversi partner navali per la costruzione dei cacciatorpediniere classe Arleigh Burke. L’azienda ha inoltre stabilito partnership internazionali con Hyundai Heavy Industries e Babcock International Group per incrementare l’efficienza produttiva.
Entre los avances clave se encuentra la adquisición de una planta en Goose Creek, Carolina del Sur para módulos de submarinos y unidades de portaaviones, así como acuerdos con seis distintos socios navales para la construcción de destructores de la clase Arleigh Burke. La compañía también ha establecido alianzas internacionales con Hyundai Heavy Industries y Babcock International Group para mejorar la eficiencia productiva.
주요 성과로는 잠수함 모듈 및 항공모함 부품을 위한 사우스캐롤라이나주 구스크리크(Goose Creek)의 제조 시설 인수와 아를리 버크급 구축함 건조를 위한 여섯 곳의 조선 파트너사와의 협업이 있습니다. 또한 현대중공업(Hyundai Heavy Industries)과 밥콕 인터내셔널 그룹(Babcock International Group)과의 국제적 제휴를 통해 생산 효율성을 높이고 있습니다.
Parmi les développements clés figurent l’acquisition d’une usine à Goose Creek, Caroline du Sud pour des modules de sous-marins et des unités de porte-avions, ainsi que des partenariats avec six partenaires navals différents pour la construction de destroyers de la classe Arleigh Burke. La société a également noué des partenariats internationaux avec Hyundai Heavy Industries et Babcock International Group afin d’améliorer l’efficacité de la production.
Wesentliche Entwicklungen sind der Erwerb einer Fertigungsanlage in Goose Creek, South Carolina für U-Boot-Module und Trägerbaugruppen sowie Kooperationen mit sechs verschiedenen Schiffbaupartnern für den Bau von Zerstörern der Arleigh-Burke-Klasse. Zudem hat das Unternehmen internationale Partnerschaften mit Hyundai Heavy Industries und Babcock International Group geschlossen, um die Produktionseffizienz zu steigern.
Positive
- Strategic expansion of production capacity through 23 partner companies
- Doubled outsourced hours in 2025 with plans to quadruple within two years
- Acquisition of new manufacturing facility in South Carolina for submarine and aircraft carrier production
- Establishment of international partnerships with major shipbuilders
- Improved hiring rates and reduced attrition
Negative
- Increased dependency on external partners and suppliers
- Potential complexity in managing distributed manufacturing operations
- Quality control challenges across multiple facilities
Insights
HII’s distributed shipbuilding strategy expands production capacity, addressing Navy demand while strengthening the industrial base across multiple states.
HII’s strategic shift toward distributed shipbuilding represents a significant operational transformation aimed at addressing the increased demand from the U.S. Navy. By expanding their structural assembly network to 23 companies and planning to quadruple outsourced hours over a two-year period, HII is effectively addressing production bottlenecks that have historically challenged naval shipbuilding schedules.
The acquisition of the Goose Creek manufacturing facility in South Carolina (now Charleston Operations) creates a dedicated site for completed submarine modules and aircraft carrier structural units, providing HII with much-needed additional capacity beyond their traditional Newport News facilities. This geographic diversification mitigates workforce constraints in any single region while creating economic benefits across multiple states.
For Ingalls Shipbuilding, the distribution of Arleigh Burke-class destroyer work across six different shipbuilding partners in multiple states represents a paradigm shift in naval shipbuilding. By targeting locations with existing skilled labor and facility capacity outside their traditional labor market, HII is addressing one of the industry’s most persistent challenges: workforce availability. This distributed model supports construction of DDGs 135, 137, and 139, suggesting improved delivery timelines for these critical vessels.
The international partnerships with Hyundai Heavy Industries and Babcock International Group further enhance HII’s ability to implement best practices and technologies from global leaders. These relationships potentially bring valuable knowledge transfer and technology sharing that could improve production efficiency across HII’s operations.
This distributed approach fundamentally addresses the capacity constraints that have challenged naval shipbuilding programs, potentially improving schedule adherence while strengthening the broader industrial base needed for future naval buildups.
09/11/2025 – 11:15 AM
NEWPORT NEWS, Va., Sept. 11, 2025 — HII (NYSE: HII) is making waves in the defense sector with its strategic shift towards distributed shipbuilding, a move designed to bolster production capacity and meet the U.S. Navy’s escalating demands. The company is actively engaging shipyards and fabricators across multiple states, signaling a significant expansion within the U.S. shipbuilding industrial base. This ambitious undertaking involves a keen focus on improving schedule adherence for all vessels under HII’s construction.
“HII is fully committed to amplifying our throughput and delivering more ships from both yards at an accelerated pace for the Navy,” stated HII CEO Chris Kastner. “We have already doubled our outsourced hours in 2025 and are on track to quadruple that figure within the next two years. Furthermore, our hiring rates are up, employee attrition has decreased, and our overall experience base continues to expand.” This commitment underscores HII’s dedication to efficiently meeting the nation’s defense needs while simultaneously strengthening the domestic manufacturing landscape.
HII’s structural assembly network, comprised of companies contributing to the outsourced modular assembly of ships, has grown to include 23 partners and is poised for further expansion. This collaborative approach allows HII to leverage specialized expertise and resources from across the country, optimizing the shipbuilding process.
A prime example of HII’s expanded reach is the acquisition of a manufacturing facility in Goose Creek, South Carolina by Newport News Shipbuilding. Now operating as HII’s Charleston Operations, the site will be dedicated to producing completed submarine modules and structural aircraft carrier units, offering substantial opportunities for future growth. This strategic move diversifies HII’s geographical footprint and strengthens its ability to meet increasing demands. The company is also identifying key manufacturing partners in Virginia and beyond to build structural assemblies for future submarines and aircraft carriers, marking a transformative evolution towards a more distributed shipbuilding model designed to enhance the production of the Navy’s next-generation fleet.
From an investor’s perspective, this distributed model offers both opportunities and potential risks. While it promises increased efficiency and quicker turnaround times, it also introduces complexities in supply chain management and quality control across diverse locations. This is a crucial factor for analysts to consider when evaluating HII’s growth trajectory. The successful management of this geographically dispersed network will be key to maintaining profitability and fulfilling contractual obligations with the U.S. Navy. Furthermore, the reliance on a network of external partners exposes HII to vulnerabilities in the event of economic downturns, supply chain disruptions, or geopolitical instability affecting the operations of these partners.
Ingalls Shipbuilding in Pascagoula, Mississippi is also embracing the distributed shipbuilding model by contracting select outfitted structural units for Arleigh Burke-class destroyers to partner locations for construction, inspection, and acceptance, which are then delivered to Ingalls for final integration. These partners were strategically selected based on existing skilled labor and facility capacity, extending beyond the traditional labor market. Early phases of this destroyer work are underway with six different shipbuilding partners in multiple states, and additional work packages involving more U.S. shipbuilding partners are under evaluation. The current scope of this work will support construction of DDGs 135, 137 and 139.
Beyond domestic partnerships, HII is actively pursuing international collaborations to leverage new technologies and maximize production efficiency. Partnerships with Hyundai Heavy Industries (HHI) and Babcock International Group are aimed at enhancing throughput and strengthening the shipbuilding industrial base. These strategic alliances will allow HII to capitalize on mutual strengths, expand shipbuilding capabilities, and explore new market opportunities that strengthen the global defense industry.
This move comes at a critical time when geopolitical tensions are rising, and the demand for advanced naval capabilities is growing. HII’s strategic partnerships are poised to deliver significant returns, boosting shareholder value and strengthening national security.
HII is a global, all-domain defense provider. HII’s mission is to deliver the world’s most powerful ships and all-domain solutions in service of the nation, creating the advantage for our customers to protect peace and freedom around the world.
As the nation’s largest military shipbuilder, and with a more than 135-year history of advancing U.S. national security, HII delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. Headquartered in Virginia, HII’s workforce is 44,000 strong.
FAQ
What is HII’s plan to increase shipbuilding capacity in 2025?
HII has doubled its outsourced hours in 2025 and plans to quadruple them within two years through partnerships with 23 companies, including a new facility in South Carolina and six shipbuilding partners for destroyer construction.
How many partner companies are in HII’s structural assembly network?
HII’s structural assembly network currently includes 23 companies and is continuing to grow.
What international partnerships has HII formed for shipbuilding?
HII has formed strategic partnerships with Hyundai Heavy Industries (HHI) and Babcock International Group to enhance throughput and strengthen the shipbuilding industrial base.
What is HII building at its new Goose Creek, South Carolina facility?
At the Charleston Operations facility in Goose Creek, South Carolina, HII will produce completed submarine modules and structural aircraft carrier units, with room for future expansion.
Which destroyer classes are being built through HII’s partner network?
HII’s partners are constructing select outfitted structural units for Arleigh Burke-class destroyers, specifically supporting construction of DDGs 135, 137 and 139.
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