HD Hyundai announced on Thursday that its shipbuilding subsidiary, HD Korea Shipbuilding & Offshore Engineering, has signed a memorandum of understanding with American shipbuilder Fraser Industries to collaborate on modernizing shipyards, aiming to revitalize the U.S. shipbuilding industry.
This agreement marks the first practical implementation since HD Korea Shipbuilding added development and supply of digital engineering and manufacturing platforms to its business objectives in March, positioning comprehensive shipyard construction solutions as a key driver for future growth.
The partnership will span the entire shipyard lifecycle, including shipyard diagnostics and solution development, yard and factory layout design, robotics and automation integration, optimization of costs, processes, quality, and productivity, implementation of artificial intelligence (AI) and data-driven digital solutions, and expansion of supply chains while fostering technical talent.
To achieve these goals, HD Korea Shipbuilding will provide Fraser Industries with a comprehensive package of smart shipyard technologies, encompassing shipyard design and construction expertise, production and operational systems, and data management techniques.
The companies plan to finalize a supply contract for a Shipyard Modernization Consulting Program by year-end, using Fraser’s shipyard on Lake Superior’s shore as a proving ground for revitalizing the U.S. shipbuilding sector.
The Great Lakes region, traditionally a hub for U.S. shipbuilding and maintenance with a robust supply chain, is emerging as a focal point for the government’s shipbuilding revival efforts. Recently, Fraser Industries partnered with local firms to bid on a U.S. Coast Guard contract for new light icebreakers.
Patrick Kelly, Chief Executive Officer (CEO) of Fraser Industries, expressed enthusiasm about the partnership, stating that they’re thrilled to collaborate with HD Hyundai, a world leader in shipbuilding technology, to modernize the operations. This alliance marks a crucial step towards rejuvenating the U.S. shipbuilding industry.
Kim Hyung-kwan, CEO of HD Korea Shipbuilding, commented that they’re committed to transforming Fraser’s shipyard into a cornerstone of the U.S. shipbuilding renaissance by sharing the comprehensive expertise. It aims to expand the partnership across various domains, becoming an integral ally in revitalizing America’s shipbuilding sector.
In related news, HD Korea Shipbuilding reported record-breaking Q2 results, with consolidated revenue of 8.927 trillion KRW (about 6.2 billion USD) and operating profit of 1.6451 trillion KRW (about 1.13 billion USD), marking year-over-year increases of 20.2% and 72.5% respectively. This stellar performance is attributed to the commencement of construction on high-value liquid natural gas (LNG) carriers ordered during the 2024 industry supercycle.
