Expansion of Hanwha Ocean in U.S. Naval Maintenance and Repair
The USNS Charles Drew is set to arrive at Hanwha Ocean’s Geoje shipyard, where it will undergo a comprehensive three-month maintenance overhaul. This process will involve critical repairs to the vessel’s hull and the careful disassembly, servicing, and reassembly of essential internal structural components. Typically, naval vessels are scheduled for such maintenance within two weeks of signing a contract, highlighting the efficiency and urgency of these operations.
In a prior project involving the USNS Wally Schirra, Hanwha Ocean uncovered damage to the hull that was more extensive than initially anticipated. As a result, the company and the U.S. Navy entered into a supplemental agreement, commonly referred to as a “change order,” to address the additional repair work. Industry experts suggest that a similar adjustment might be necessary for the Charles Drew, potentially increasing the total value of the contract beyond 30 billion won, or approximately $21 million.
This latest contract represents Hanwha Ocean’s third maintenance, repair, and overhaul (MRO) deal with the U.S. Navy. Following its successful completion of the Wally Schirra project in August 2023, the company secured another contract in November for the USNS Yukon, a replenishment oiler. According to sources familiar with the matter, the Yukon has already completed its repairs and has since departed from the Geoje facility.
Hanwha Ocean is making significant strides in expanding its presence in the naval MRO sector. In June 2023, the company partnered with its affiliate Hanwha Systems to acquire Philly Shipyard in Philadelphia for $100 million. This acquisition was aimed at strengthening Hanwha’s position within the U.S. defense supply chain and enhancing its capabilities in ship maintenance and repair.
As part of its long-term expansion strategy, Hanwha Ocean aims to secure between five and six MRO contracts by the end of 2025. This ambitious goal reflects the company’s commitment to growing its footprint in the global maritime and defense industries. By investing in key partnerships and acquiring strategic assets, Hanwha is positioning itself as a major player in the U.S. naval maintenance market.
Key Developments in Hanwha’s MRO Strategy
- Recent Contracts: Hanwha has successfully completed projects for the USNS Wally Schirra and USNS Yukon, demonstrating its capability to manage complex naval maintenance tasks.
- Acquisition of Philly Shipyard: The purchase of Philly Shipyard for $100 million underscores Hanwha’s intent to expand its domestic and international operations.
- Future Goals: With plans to secure multiple MRO contracts by 2025, Hanwha is looking to solidify its reputation as a reliable and capable partner in naval maintenance and repair.
These developments highlight the growing importance of Hanwha Ocean in the U.S. defense sector and its strategic efforts to enhance its operational capabilities through both domestic and international ventures. As the company continues to invest in infrastructure and partnerships, it is well-positioned to meet the evolving demands of the naval maintenance industry.
