South Korea's Hanwha Ocean Awarded First US Navy Repair Contract

Hanwha Ocean on Wednesday announced it has secured a contract that makes it the first Korean shipbuilder to provide maintenance, repair, and overhaul (MRO) services for the U.S. Navy.

The 40,000-ton U.S. Navy dry cargo and ammunition ship USNS Wally Schirra is undergoing maintenance and inspection at Hanwha Ocean’s Geoje shipyard, with additional onshore maintenance work being conducted using the shipyard’s floating facilities.

The MRO contract requires a Master Ship Repair Agreement (MSRA) certification, which Hanwha Ocean earned in July 2024. The certification, granted by the U.S. Navy, validates the quality of Hanwha Ocean’s shipbuilding and MRO capabilities.

The U.S. has been expanding its partnerships with allied nations in an effort to bolster its naval and commercial shipbuilding and repair capabilities amid growing threats overseas. In particular, the nation is seeking tighter connections with Korean shipbuilders as China aggressively pursues worldwide shipbuilding dominance.

Following decades of shipbuilding program delays and capacity decline, the Biden administration has recently undertaken a number of actions aimed at supporting the American shipbuilding supply chain and enhancing the security of the global maritime environment through collaboration with allies and private sector partners.

Meanwhile, Hanwha Ocean has been working to grow its global defense activities. The company, having recently acquired Philly Shipyard in the U.S., said the three-month USNS Wally Schirra MRO project in Geoje will serve as a pilot initiative in Asia, accelerating its entry into the U.S. naval shipbuilding market.

“With the global naval vessels MRO market size projected to exceed $60 billion annually, this U.S. Navy maintenance project represents a stepping stone to a significant leap forward,” said a spokesperson for Hanwha Ocean. "We have meticulously prepared and refined our MRO services to build trust with the U.S. Navy. We will also work closely with local small and medium-sized enterprises to support the maintenance industry in South Korea.”

USNS Wally Schirra (T-AKE-8) is a Lewis and Clark-class dry cargo ship built by General Dynamics NASSCO and commissioned in 2009. Part of Military Sealift Command's Naval Fleet Auxiliary Force, Wally Schirra is crewed by both civil service mariners and Navy sailors to deliver ammunition, provisions, stores, spare parts, potable water and petroleum products to carrier battle groups and other naval forces, serving as a shuttle ship or station ship.