HJ Shipbuilding & Construction Raises Performance Expectations for Second Half with Eco-Friendly Vessel Orders and MRO Expansion

Successive Orders for LNG Bunkering Vessel and Container Ships
U.S. Navy MRO Agreement Also Within Reach

HJ Shipbuilding & Construction is accelerating its efforts to secure orders for eco-friendly, high value-added vessels and to expand into the MRO (maintenance, repair, and overhaul) business, raising expectations for its performance in the second half of the year.

In July, HJ Shipbuilding & Construction won an order from H-Line Shipping for one 18,000㎥ LNG bunkering vessel. In September, the company signed a contract with a shipowner in the Oceania region to build four eco-friendly container ships with a capacity of 8,850 TEU, totaling 640 billion KRW.

Both contracts were reportedly awarded because the shipowners highly valued HJ Shipbuilding & Construction's technological capabilities, quality, and ability to meet delivery deadlines.

In particular, the company is actively entering the MRO market in the field of special-purpose ships, where it holds a strong competitive advantage. On September 23, a fact-finding team from the U.S. Naval Sea Systems Command (NAVSEA) visited HJ Shipbuilding & Construction’s Yeongdo Shipyard to conduct an MRO business qualification assessment.

The inspection team thoroughly examined the safety and quality management systems, as well as the level of security, through on-site inspections of large transport ships and high-speed landing craft. It is reported that they expressed a high level of satisfaction with HJ Shipbuilding & Construction's operational capabilities.

HJ Shipbuilding & Construction has already passed the document screening and technical competency evaluation. Depending on the results of the comprehensive evaluation following the on-site inspection, the company is expected to sign an MSRA (Master Ship Repair Agreement) with the U.S. government as early as November.

The MSRA is a process in which the U.S. government officially certifies a shipyard's ability to maintain, repair, and overhaul naval vessels. If signed, it is expected to serve as a bridgehead for overseas MRO business expansion.

Additionally, the company has formed a consultative body with shipbuilding and equipment companies in the Busan and Gyeongnam regions to foster an MRO ecosystem, including technology, workforce, and parts supply chains. Through these efforts, HJ Shipbuilding & Construction aims to establish a foundation for mutual growth with local industries and strengthen its base for entering the global defense maintenance market.

The company also plans to use funds raised through a third-party paid-in capital increase, in which the largest shareholder participated 100%, to improve its financial structure, expand orders for eco-friendly, high value-added vessels, and invest in MRO and defense projects linked to the Korea-U.S. MASGA (Maritime Security and Global Alliance) project. This strategy is intended to strengthen both the company’s mid- to long-term growth potential and financial soundness.

As of the first half of this year, HJ Shipbuilding & Construction's combined order backlog for shipbuilding and construction divisions amounts to 8.8 trillion KRW.

A representative from HJ Shipbuilding & Construction stated, "All of our businesses-shipbuilding, construction, and defense-are generating synergies and maintaining stable growth. With capital support from our largest shareholder, we will further enhance our competitiveness in the global market and increase our value as a sustainable growth company."

Eco-friendly container ship.

This content was produced with the assistance of AI translation services.