The US Navy has made a major decision to allocate maintenance responsibilities for one of its auxiliary ships to Hanwha Ocean, a South Korean company, at its plant in Geoje on an island province just off the south coast of the mainland.
Hanwha’s naval division was awarded a contract for the maintenance, repair and overhaul (MRO) of the vessel on 2 September 2024. The port entry ceremony, which the Korean supplier extolled as an “historic moment,” was attended by approximately 50 people from both countries.
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Designated the ‘Wally Schirra’, this Lewis and Clark-class dry cargo ship supplies ammunition, food, repair parts, fuel among other things to other combatant platforms at sea. It has a displacement of approximately 40,000 tonnes, a total length of 210 metres (m), and a width of 32.2m.
In May the logistic ship participated in US-Dutch naval operations in the South China Sea. This area of the world is a hotbed in the current ‘grey-zone’ conflict between the US and China playing out in the region. It was said that the bilateral effort provided an opportunity to improve allied interoperability and conduct complex scenarios, and all the while the Wally Schirra was on hand to replenish USS Mobile and HNLMS Tromp.
Hanwha will deliver the converted ship to the US Navy after approximately three months of maintenance, the supplier confirmed.
US industry is overburdened
While this instance of outsourcing may be the first of its kind, heralding a greater defence cooperation between the two allies, it is not the first time that South Korean industry has stepped in to prop up a breathless US naval industrial base.
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By GlobalData
Only two months ago, Hanwha Ocean and Hanwha Systems – two divisions within the Korean parent group of the same name – entered into a $100m (Krw134m) purchase agreement for Philly Shipyard, a prominent US tanker and cargo construction company.
Furthermore, it as a move that stems from a foundational visit made by the US Secretary of the Navy, Carlos del Toro, to Hyundai Heavy Industries in Japan and Hanwha in Korea at the end of February.
At the time, del Toro commented: “discussions were very productive and centered on attracting Korean investment in integrated commercial and naval shipbuilding facilities in the United States.”
Other US allies are bolstering production of US naval components, albeit to a lesser extent. Just this week, the Department of Defense awarded a contract to a Chesapeake-based supplier that will use UK industry in Hampshire to produce 12 main shaft seal assemblies in support of the nuclear-powered propulsion system for the Virginia-class fast attack submarine fleet.
Hanwha Ocean resources
“We have become the first domestic shipyard to conduct an MRO project for a US Navy ship,” noted a Hanwha ocean official. “We will continue the reputation of Korean Defence through timely delivery based on our world-class MRO technology.”
Recently, the US has been actively reviewing the plan to entrust ship MRO work to allied countries with worthy ship technology and facilities due to the difficulties in maintaining operational naval forces due to distance and cost issues.
Particularly, there is a crisis in the US submarine construction sector according to major industrial players familiar with the matter. In response, suppliers are finding new ways to leverage coveted manufacturing skills such as welding, which are, on the whole, in a steady decline.
Accordingly, Hanwha Ocean obtained the MSRA (Ship Maintenance Agreement) based on its leading ship technology and maintenance infrastructure and won the contract for this military support ship MRO project.
Hanwha’s naval industrial expansion is noted in its financials for the first half of this year: sales accumulated $3.5bn – an approximate increase of 47.8% year-on-year.
“Investments for stable human resources supply and production efficiency are expanding, and the production system has entered the stabilisation phase,” an official said.
