HD Hyundai's decision to team up with a U.S. partner to build a next-generation smart shipyard concentrating its most advanced technology is widely read as a move to enter the U.S. warship construction market, which exceeds $60 billion a year.
HD Kiewit Shipbuilding, a joint venture between HD Hyundai and Kiewit, the largest U.S. construction and engineering firm, plans to select a shipyard site as soon as possible and finalize the total investment size and equity structure, with groundbreaking set for next year and operations targeted for 2029, business sources said on the 23rd. California on the West Coast and Texas in the South are among the locations under consideration, with Ingleside, Texas, seen as a leading candidate because of its proximity to the headquarters of Kiewit Offshore Services. "Procedures remain, including consultations with the state government and industrial complexes, so this is not a stage where we can disclose details," an HD Hyundai official said. "We will finalize and announce it as soon as possible."
HD Hyundai expects building a new shipyard in the U.S. from the ground up to take about two to three years, similar to the construction periods for HD Hyundai Heavy Industries' Ulsan shipyard, which took two years and three months, and its Gunsan shipyard, which took one year and 11 months. Completion of the U.S. yard before the end of President Donald Trump's term on Jan. 20, 2029, would be difficult, however, leaving open the possibility that HD Hyundai adjusts its pace.
HD Kiewit Shipbuilding has decided to first pursue business opportunities in U.S. Navy logistics support ships and commercial vessels, placing the U.S. warship market squarely in its sights. The U.S. military has budgeted $305.7 billion to acquire 75 new vessels over the five years from next year through 2031.
HD Hyundai has stressed the significance of the plan, saying it is "a project to build a new shipyard rather than acquiring an aging existing yard and restarting it." The company is emphasizing that the facility will be a full-service shipyard capable of handling everything from design to construction and launch, not a block and module plant without a dock — the facility used to float a vessel on the water — in an effort to secure an advantageous position in winning U.S. warship orders. Hanwha Ocean's Philly Shipyard, which currently employs 2,500 people, has two docks, and the HD Kiewit yard, which plans to employ up to 3,000, is likewise expected to have two or more docks. Some observers estimate the new yard will have annual construction capacity of 15 to 20 vessels.
The Korea-U.S. joint venture yard is expected to become the first smart shipyard in the U.S. If it adopts advanced technologies such as digital twins and robotic welding to maximize automation from design through production, it is expected to resolve a significant part of the skilled labor shortage that has chronically plagued the U.S. "The launch of HD Kiewit Shipbuilding is an important milestone demonstrating HD Hyundai's commitment and vision as a strategic partner in the U.S. shipbuilding industry," said Choi Han-nae, head of planning at HD Korea Shipbuilding & Offshore Engineering.