South Korea’s Hyundai Heavy Industries recently signed an agreement with US shipbuilder Huntington Ingalls Industries to jointly produce the US Navy’s Next Generation Logistics Ship.
Nearly all of the United States Navy’s major shipbuilding programs face significant delays, with some running years behind schedule. The delays are the result of worker shortages, supply chain problems, and, most notably, a lack of American shipyards. Since the 1970s, 14 defense-related shipyards have closed, with only one new one opening.
There has also been considerable consolidation, leading to fewer independent shipyards.
The United States shipbuilding sector is getting a lifeline of sorts, with South Korea’s HD Hyundai Heavy Industries concluding a deal with US military shipbuilder Huntington Ingalls Industries to jointly produce the US Navy’s auxiliary ships.
Understanding the New HHI–HII Agreement
HHI and HII signed a “memorandum of agreement” (MOA) at the Asia-Pacific Economic Cooperation (APEC) 2025 forum in Gyeongju, South Korea, on Sunday. It will advance shipbuilding efforts between the United States and its Asian ally—and mark the first time any Korean shipbuilder will take on the construction of a US Navy vessel.
“This marks the beginning of deeper collaboration between not only our companies, but each of our countries, that will support enduring changes to military and commercial shipbuilding in America,” said Eric Chewning, HII executive vice president for maritime systems. “We look forward to working collaboratively with HHI, the U.S. and South Korean governments, and with our customers to transform the US shipbuilding industrial base and enable accelerated throughput in our shipyards.”
The newly signed MOA will build on “previous collaboration” between the companies, which had been focused on maintenance, repair, and overhaul (MRO). The new emphasis will aid in expanding the US shipbuilding industrial base—and it has been dubbed “Make American Shipbuilding Great Again” (MASGA).
It will include “the exploration of joint investments in distributed shipbuilding and flexible ship construction,” and create “strategic teaming opportunities” for the United States Navy’s auxiliary shipbuilding programs by “leveraging the combined expertise” of the respective companies.
The partnership will allow for collaboration in several areas, including “engineering, research & development and technology implementation best practices in areas such as AI/ML, robotics and automation,” and it will seek to strengthen in-theater ship lifecycle support for the United States Navy in the Indo-Pacific region.
The Two Companies Will Jointly Build the US Navy’s NGLS Ship
Earlier this month, the two shipbuilders had agreed to “jointly pursue” the design contract for the US Navy’s Next Generation Logistics Ship (NGLS), medium-sized vessels that will provide underway replenishment (UNREPS), and serve to supplement the fleet of John Lewis-class replenishment oilers (AO) and Supply-class fast combat support ships (AOE) now in service.
Such vessels are critical to the US Navy’s deployments to distant waters worldwide, in both “contested and non-contested environments.”
The joint partnership will leverage HII’s shipbuilding experience and HHI’s design expertise. The South Korean firm had previously created the designs for vessels now in service with the South Korean Navy and the Royal New Zealand Navy. The two companies are now set to respond to the US Navy’s “request for proposal” (RFP) for the “concept design phase” of the auxiliary vessels at the center of the NGLS program.
“The NGLS is envisioned to be smaller than existing ships in the Combat Logistics Force, and will operate in global maritime domains, sustaining afloat and ashore Navy and USMC requirements. NGLS is currently conceived to be a single ship type providing Refuel, Resupply, and Rearm capabilities,” the RFP explained.
HHI developed its first auxiliary vessel, the HMNZS Endeavor, in 1987, and has also supplied the South Korean Navy with three Cheonji-class and one Soyang-class auxiliary ships.
The partnership between the two shipbuilders will involve either expansion, acquisition, or the construction of new shipyard facilities in the United States. It will also have HHI build modular hull blocks in Korea, which can be sent to HII’s shipyards in Newport News, Virginia, and elsewhere.
“Through joint participation in U.S. Navy procurement programs and investments aimed at establishing ship production bases in the United States, the two nations’ key industries are taking a major step toward deeper strategic collaboration,” added HHI President Joo Won-ho. “We are confident that this partnership will generate powerful synergies by combining Korea’s cutting-edge shipbuilding technologies with the U.S. defense sector’s strong market competitiveness.”
About the Author: Peter Suciu
Peter Suciu has contributed over 3,200 published pieces to more than four dozen magazines and websites over a 30-year career in journalism. He regularly writes about military hardware, firearms history, cybersecurity, politics, and international affairs. Peter is also a contributing writer for Forbes and Clearance Jobs. He is based in Michigan. You can follow him on Twitter: @PeterSuciu. You can email the author: [email protected].
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