HD Hyundai Heavy Industries (HHI) has become the first Korean shipbuilder to sign a master ship repair agreement (MSRA) with the U.S. Naval Supply Systems Command, the company said Thursday.
An MSRA is necessary for privately owned shipbuilders to enter the U.S. naval vessel maintenance, repair and overhaul (MRO) market.
Under the recent agreement, therefore, the Korean firm outpaced its rivals in terms of qualifications for participating in bids over the next five years to maintain and repair the U.S. Navy’s combatant ships and the U.S. Military Sealift Command’s auxiliary ships.
After HD HHI applied for the MSRA in May last year, the U.S. authorities finished their due diligence activities concerning the Korean firm’s facilities and the quality of its products in January. Inspections of its security and finances were done in March and May, respectively.
Based on the latest agreement with the U.S. government and the ongoing MRO for the Philippine Navy, the shipbuilder seeks to expand its presence in other Asian countries and Latin America.
In addition, the company expects orders from the U.S. government for the construction of naval and other government-owned vessels.
Korean shipbuilders have competed fiercely to enter the U.S. naval vessel MRO market, which is estimated to be worth nearly $15 billion this year. According to market tracker Mordor Intelligence, the global naval vessel MRO market is expected to reach $63.6 billion in 2029, up from $57.8 billion in 2024.