South Korea’s Samsung Heavy Industries announced two key partnerships with leading U.S. shipbuilders, as it follows competitors HD Hyundai and Hanwha Ocean into the U.S. shipbuilding market. The South Koreans look to the emerging opportunities in the U.S. under the anticipated efforts to revitalize the segment and the Make American Shipbuilding Great Again program.
Samsung Heavy Industries is one of South Korea’s largest shipbuilders, known for its work in developing the liquified natural gas carrier segment, ranging from LNG carriers to floating LNG production units. It has a long heritage in the oil and gas sector as well as containerships, and is actively pursuing the development of new technologies for shipping and shipbuilding. The company highlights a current orderbook which includes 120 commercial ships and three FLNG units.
A tri-party Memorandum of Agreement was announced on December 3 involving SHI with General Dynamics NASSCO and its long-term partner DSEC Co. The companies said they plan to “join forces to collaborate on their industry-leading ship design and manufacturing automation and technology” for the U.S. market.
The companies point to the opportunities for naval and government shipbuilding as well as commercial shipping. They cite the U.S. Navy’s Next Generation Logistics Ships as one of the areas where they can share common experience.
"This partnership brings together three extraordinary companies with a track record of success and over 160 years of combined shipbuilding and design experience," said Dave Carver, president of General Dynamics NASSCO.
General Dynamics NASSCO highlights its work as a designer and builder, having delivered over 150 vessels since the 1950s. It is currently building the U.S. Navy's 20-ship class of John Lewis (T-AO 205) Fleet Oilers and is designing the U.S. Navy's future Submarine Tender (AS-X) class. Recent commercial programs include ConRo ships, containerships, and medium range (MR) tankers, all designed with DSEC and other South Korean partners.
DSEC Co. highlights that it provides a complete range of shipbuilding and marine engineering services, including ship design, material procurement, quality management, shipyard operations and development consulting, logistics support, and eco retrofit solutions. With over three decades of experience, DSEC notes it has worked extensively on U.S.-built ship designs and material packages throughout the U.S., supporting a wide variety of commercial, naval, and government ship programs.
"Through this tri-party collaboration, SHI is committed to leveraging its technological expertise, skilled workforce and production infrastructure to enhance the capabilities of the U.S. shipbuilding industries," said Joonyun Kang, director of SHI.
Today, December 4, SHI followed the first agreement, announcing it has also signed a Memorandum of Understanding with Conrad Shipyard. The MOU formalizes a collaborative framework to jointly explore opportunities in the rapidly expanding U.S. LNG bunkering market.
“Through this collaboration, we expect to enter the U.S. LNG bunkering market while also contributing to the revitalization of the U.S. shipbuilding industry,” said an SHI representative.
Conrad and SHI will work together to evaluate and pursue technical, commercial, and market-based initiatives that support the design, construction, and deployment of LNG bunkering vessels tailored for U.S. regulatory and operational requirements. The MOU is intended to combine SHI’s global expertise in advanced LNG technologies with Conrad’s proven LNG shipbuilding capabilities and domestic market access.
South Korea committed to making a $150 billion investment in U.S. shipbuilding during the U.S. trade negotiations and gave the program the catchphrase of “Make American Shipbuilding Great Again” (MASGA). Hanwha Ocean was first into the market, announcing the acquisition and planned investment to revitalize the Philly Shipyard. HD Hyundai Heavy Industries has said it is also looking at possibly U.S. acquisitions, while the company in October signed an agreement with HII (Huntington Ingalls Industries), which they said is designed to further expand cooperation in shipbuilding and repair, as they target the U.S. Navy and commercial shipping. Hyundai also announced a new partnership with Edison Chouest Offshore that calls for jointly building containerships.
