HD Hyundai (267250) is teaming up with U.S. infrastructure firm Kiewit to build a new shipyard in the United States.
HD Hyundai said on the 23rd that it signed a contract with Kiewit, the largest construction and engineering infrastructure company in the U.S., to establish a shipbuilding joint venture on the 22nd, local time. The two companies formed a strategic partnership in July and have since pursued joint vessel construction in the U.S. and cooperation on producing ship blocks and modules.
The joint venture will be named HD KIEWIT SHIPBUILDING. An HD Hyundai official said the name reflects "our commitment to building the best shipyard that sets a new standard for the U.S. shipbuilding industry by combining HD Hyundai's world-class technology and shipyard operating know-how with Kiewit's large-scale fabrication and construction capabilities."
HD Kiewit Shipbuilding will build an advanced smart shipyard on an industrial site in the U.S. The goal is to break ground next year and begin full operations in 2029.
HD Hyundai is placing particular significance on the fact that this is a new shipyard construction project rather than the acquisition and restart of an existing aging yard. The company expects the new yard to accelerate the expansion of shipbuilding capacity in the U.S. and the creation of a shipbuilding ecosystem, while supporting the revival and competitiveness of the American shipbuilding industry.
HD Hyundai projects that local employment will reach about 3,000 once the new shipyard is operating. The company also plans to continue efforts to develop workers through technical training and to strengthen supply chains within the U.S.
The new shipyard will be the first in the U.S. to apply the "future shipyard" model and digital production technologies that HD Hyundai is developing. The plan is to build a smart shipyard where the entire process from design to production is run on data, using advanced technologies such as digital twins, automated production systems and robotic welding, in order to improve productivity, quality and safety while addressing shortages of skilled workers.
HD Kiewit Shipbuilding will explore business opportunities in U.S. Navy logistics support vessels and commercial ships, while also reviewing a business of fabricating and supplying ship blocks and modules to U.S. shipyards. The partners plan to later expand the scope of cooperation into port infrastructure.
"The launch of HD Kiewit Shipbuilding is an important milestone that demonstrates HD Hyundai's commitment and vision as a strategic partner of the U.S. shipbuilding industry," said Choi Han-nae, head of the planning division at HD Korea Shipbuilding & Offshore Engineering (009540). "We will bring our capabilities together to contribute to rebuilding the U.S. shipbuilding industry and expanding Korea-U.S. shipbuilding cooperation, and will continue to uncover new business opportunities."
Chad Johnson, CEO of Kiewit Maritime, said the company will "provide the workforce, facilities and know-how needed for this broad and large-scale project based on Kiewit's capabilities," adding, "Combined with HD Hyundai's world-class shipbuilding expertise, we will build a modern shipyard in the United States."