South Korea's Hanwha Ocean Cleared to Perform Ship Repair for the US Navy

South Korean shipbuilding group Hanwha Ocean on Tuesday announced it has been certified to participate in vessel maintenance, repair and overhaul (MRO) activities for the U.S. Navy.

The company said its Master Ship Repair Agreement (MSRA) signed with the U.S. Navy enables it to bid to perform MRO work for U.S. naval vessels at its Geoje Shipyard in South Korea.

Hanwha Ocean applied for the MSRA in January and underwent a rigorous accelerated evaluation process, including quality, security and financial reviews, to secure the certification. 

Hanwha Ocean, which has been working to expand its footprint internationally, said the certification is expected to help drive its entry into the U.S. market and expand its MRO reach in the U.S. following its recent $100 million acquisition of Philly Shipyard. That deal is expected to close in the fourth quarter of this year.

The move comes as the U.S. looks to expand 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.

Earlier this month, the U.S. formed a consortium with Canada and Finland to build in-demand and strategically important icebreaker ships.