Announced ahead of the Sea-Air-Space symposium hosted by the Navy League, the agreement aims to accelerate ship production through technology exchange, lessons learned, and potential component outsourcing.
“We’re open to wherever this relationship can take us,” said Brian Blanchette, President of HII’s Ingalls Shipbuilding division. “Both companies are currently building Aegis destroyers, and we see opportunities to share knowledge and strengthen supply chains.”
Focus on Aegis Destroyer Programs and Component Supply
HII’s Ingalls Shipbuilding, located in Pascagoula, Mississippi, is one of two shipyards in the U.S. producing the Flight III Arleigh Burke-class guided-missile destroyers, and the only U.S. yard building amphibious warships. Hyundai Heavy Industries has also delivered variants of the Arleigh Burke-class destroyers, with its latest vessel handed over in November 2023.
Both companies have expressed interest in exploring mutual support for destroyer construction, including component supply and leveraging Hyundai’s efficient production processes and supply chain capabilities.
“This partnership marks a new milestone for both of our companies,” said Won-ho Joo, head of Hyundai’s naval unit. “It gives us a unique opportunity to expand our shipbuilding expertise.”
Partnership Centers on Ingalls Shipbuilding
According to reports, the majority of the MoU’s activities will center on Ingalls Shipbuilding and will not involve HII’s Newport News Shipbuilding, the company’s nuclear shipyard in Virginia.
The partnership comes at a time when U.S. naval shipbuilders are actively trying to grow their skilled labor force. Shipyards on the Gulf Coast, including those in Pascagoula and Mobile, Alabama, are facing high demand from both naval construction programs and the existing oil and gas industry.
Workforce Challenges and Industry Expertise
HII CEO Chris Kastner noted that the company is now prioritizing more experienced hires due to ongoing workforce attrition.
“We’re repositioning our hiring programs to hire fewer entry-level workers and more experienced personnel,” Kastner said. “This shift means we’ll hire fewer people overall, but we’ll need to find ways to maintain productivity.”
South Korean shipyards, including HHI, are known for their industrial efficiency and have previously partnered with U.S. yards to boost output. In recent years, interest in South Korea’s shipbuilding expertise has grown among U.S. defense leaders. Former Secretary of the Navy Carlos Del Toro visited South Korean yards, Hanwha Ocean acquired Philly Shipyard, and the USNS Wally Schirra (T-AKE-8) recently underwent maintenance work in South Korea.
The agreement between HII and Hyundai represents a continued effort to strengthen U.S. naval shipbuilding capacity through international cooperation and proven shipbuilding practices.
