HD Hyundai Exports Shipyard Modernization to U.S. for the First Time... Sharing 'How to Build a Shipyard'

MOU Signed with Fraser

Comprehensive Smart Shipyard Package from Design to Production and AI

Consulting Program Agreement Expected Within the Year

HD Hyundai is set to officially launch its shipyard modernization project in the United States. This will mark the first instance where the company's accumulated expertise in building smart shipyards—from design, production, and operational systems to artificial intelligence (AI)-based digital solutions—will be exported to the U.S. market.

On the 23rd (local time), at the ceremony for the cooperation agreement related to shipyard modernization held in Washington, USA, Kim Hyungkwan, CEO of HD Hyundai Heavy Industries (left), and Patrick Kelly, CEO of Fraser Industry, posed for a commemorative photo. HD Hyundai

HD Hyundai Heavy Industries & Marine Engineering, the shipbuilding intermediate holding company of HD Hyundai, announced on the 30th that it had signed a memorandum of understanding (MOU) for "Cooperation on Shipyard Modernization for the Revival of the U.S. Shipbuilding Industry" with Fraser Industries LLC in the United States on the 23rd (local time).

This agreement represents the first project within the “Comprehensive Shipyard Construction Solution” business that HD Hyundai Heavy Industries & Marine Engineering is pursuing as a new initiative. In March, the company amended its articles of incorporation to add "development and supply of digital engineering and manufacturing platforms" as a stated business objective.

The two companies plan to begin by diagnosing the current facilities and production systems at local shipyards, then develop improvement measures. They will design the layout of yards and factories, introduce robotics and automation equipment, and enhance costs, processes, quality, and productivity. In addition to applying AI and data-driven digital solutions, they also intend to collaborate on supply chain expansion and workforce development. The approach covers all phases, from the design and construction of shipyards to actual operations.

HD Hyundai Heavy Industries & Marine Engineering will offer its shipyard design and construction know-how, production and operation systems, and data management infrastructure as an integrated package, thereby providing guidance on constructing and operating smart shipyards.

The two companies are also slated to sign a consulting program supply contract for shipyard modernization before the end of the year. The target is Fraser Shipyards, located on the shores of Lake Superior—one of the Great Lakes—which will serve as a demonstration model for the revitalization of the U.S. shipbuilding industry.

The Great Lakes region is considered a key hub for shipbuilding as well as maintenance and repair within the U.S. Fraser Shipyards participates in the "Great Lakes Shipbuilding Alliance" alongside Fincantieri Marinette Marine and Donjon Marine, and is also involved in the U.S. Coast Guard’s new polar security cutter program.

Patrick Kelly, CEO of Fraser Industries, stated, "We are pleased to collaborate with HD Hyundai, which possesses world-class technological capabilities," adding, "Our partnership will serve as an important starting point for the revival of the U.S. shipbuilding industry."

Kim Hyungkwan, CEO of HD Hyundai Heavy Industries & Marine Engineering, commented, "We plan to provide the know-how necessary from shipyard design to operation, supporting Fraser Shipyards as a linchpin for the revitalization of the U.S. shipbuilding sector. Moving forward, we aim to expand the scope of our cooperation across various sectors to become a robust partner for the American shipbuilding industry."

Meanwhile, HD Hyundai Heavy Industries & Marine Engineering, the shipbuilding intermediate holding company of HD Hyundai, achieved record-breaking quarterly results in the second quarter of this year, posting consolidated revenue of 8.927 trillion won and operating profit of 1.6451 trillion won. These figures represent a 20.2% increase in revenue and a 72.5% surge in operating profit compared to the same period last year.

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