HANJIN HEAVY INDUSTRIES

- Partners with 10 regional ship repair, maintenance, and equipment firms to pursue comprehensive cooperation

- MOU Signing Ceremony (HJSC CEO Yoo Sang-cheol, sixth from the right)

HJ Shipbuilding & Construction (HJSC) has joined forces with local shipbuilding and equipment companies to form an MRO (Maintenance, Repair, and Overhaul) Cluster Council, aiming to boost collaboration in naval MRO projects. As demand for MRO services is expected to grow both domestically and internationally, the global shipbuilder plans to establish a cooperative foundation with regional players while using this initiative as a launch pad for global market expansion.

On July 22, the South Korean shipbuilding company held an MOU signing ceremony at its Yeongdo Shipyard in Busan with 10 specialized shipbuilding firms in Busan and Gyeongsangnam-do, including International Marine and Orient Shipyard & Marine Service INC. The agreement targets to foster mutual growth and advance the naval MRO industry through the formation of the ‘MRO Cluster Council.’

Under the agreement, the participating companies will pool their resources and capabilities such as technologies, personnel, capital, facilities and knowhow to ensure the successful execution of MRO projects. They also pledged close cooperation in bidding for and carrying out future MRO contracts.

With the opening of the U.S. Navy’s MRO market which is estimated to be worth over KRW 20 trillion, Korean naval defense companies are increasingly entering the space. The Busan and Gyeongnam regions are home to a dense concentration of block builders, steel structure producers, and component manufacturers specializing in piping, wiring, and ship parts. By forming a regional industrial cluster, these companies are expected to generate strong synergies that will boost the local economy and job creation.

Building on decades of expertise in special shipbuilding, new construction, and overhaul services, HJSC is now setting its sights on expanding into overseas MRO markets. Since being designated as Korea’s first marine defense contractor in 1974, the multinational shipbuilder has built and maintained more than 1,200 naval vessels and logistics support systems. The company is currently working to finalize a Maintenance, Repair, and Supply Agreement (MRSA) with the U.S. Navy, which would significantly accelerate its entry into the global market.

Through this new MRO Cluster Council, HJSC expects to enhance core competencies in high value added naval maintenance services, which are considered a key future growth engine for the domestic shipbuilding industry, by strengthening the organic connections among participating companies’ technologies, personnel, and information.

HJSC CEO Yoo Sang-cheol stated, “To proactively respond to the growing domestic and international MRO markets, we’ve built a strategic partnership and collaborative network with key players in Busan and Gyeongsangnam-do.” He continued, “Through mutual growth and synergy among participating companies, we aim to establish a foothold in the global market, enhance the sustainability of our MRO business, and contribute to the regional economy.”