Samsung Heavy Industries is set to expand the scope of the U.S.-South Korea shipbuilding cooperation project "MASGA (Make American Shipbuilding Great Again)" by jointly constructing U.S. Navy logistics support ships with American partners and extending the collaboration to the commercial vessel sector, specifically LNG bunkering vessels, thereby accelerating its efforts to capture the North American market. During the International Workboat Show held in New Orleans, USA, from December 3 to 5, Samsung Heavy Industries signed a tripartite business cooperation agreement with General Dynamics NASSCO and DSEC (Daewoo Ship Engineering Company), a subsidiary of Hanwha Ocean. The three parties will broaden their collaboration to include ship design, equipment supply, talent development, and other areas, while also exploring joint bidding for the U.S. Navy's "Next Generation Logistics Ship."
General Dynamics NASSCO, located at the San Diego Naval Base in California, covers an area of approximately 350,000 square meters and specializes in constructing large auxiliary vessels such as bulk carriers, military oil tankers, logistics support ships, and expeditionary mobile base ships. It is the only shipyard in the United States that builds both military and commercial vessels, engaging in the design, procurement, construction, and MRO (Maintenance, Repair, and Overhaul) of commercial ships. Currently, it is also constructing large oil tankers and container ships.
At the same time, Samsung Heavy Industries signed a Memorandum of Understanding (MOU) with Conrad Shipyard, headquartered in Louisiana, for the joint construction of LNG bunkering vessels. Conrad Shipyard currently operates five shipyards in Louisiana and Texas, focusing on the construction and maintenance of barges, government vessels, tugboats, and other vessels, with a solid demand base in North America. Samsung Heavy Industries and Conrad Shipyard plan to enter the U.S. market for new vessel types, such as LNG bunkering vessels, through joint construction.
Industry insiders in South Korea noted that through this collaboration, Samsung Heavy Industries has moved beyond its MRO cooperation with Vigor Marine Group on logistics support ships and will engage in comprehensive and multi-level business cooperation in the United States, including the joint construction of next-generation logistics support ships and LNG bunkering vessels.
During its first-half performance briefing in July this year, Samsung Heavy Industries stated, "The company is discussing cooperation plans with U.S. shipbuilders and will seek various collaborative opportunities in the future, including joint construction and business expansion." In August, Samsung Heavy Industries signed a strategic partnership agreement (MOU) with Vigor Marine Group, planning to leverage its cutting-edge technology, operational experience, and optimized equipment in shipbuilding and offshore engineering to officially participate in MRO projects for the U.S. Navy and the Military Sealift Command. Building on the results of MRO cooperation, the partnership will expand to include the joint construction of commercial and special-purpose vessels, actively contributing to the revitalization of the U.S. shipbuilding industry.
In November, Samsung Heavy Industries signed a strategic partnership agreement (MOU) with DSEC, a subsidiary of Hanwha Ocean. DSEC is a key enterprise in South Korea's ship design and equipment supply sector (equivalent to China's "Specialized, Refined, Distinctive, and Innovative" enterprises). Currently, it collaborates with U.S. shipyards in areas such as design, equipment supply, maintenance, and shipyard modernization consulting for commercial and special-purpose vessels. It has 20 years of experience working with General Dynamics NASSCO in ship design and equipment supply. Through this tripartite business cooperation agreement, greater synergistic effects are expected.
Samsung Heavy Industries plans to collaborate with DSEC in various areas, including the construction of medium-sized commercial vessels, shipyard modernization consulting, ship modifications, LNG carrier cargo tank repairs, environmental and digital solutions, and the shared use of R&D equipment in markets both domestically and internationally, including the United States. Samsung Heavy Industries expects to closely integrate its shipbuilding and offshore equipment construction technology with DSEC's design and equipment procurement capabilities in the United States to establish a supply chain system best suited for the "MASGA" project. In particular, it will jointly advance the modernization of U.S. shipyards with DSEC to ensure differentiated competitiveness in its U.S. collaborations.
As early as July of last year, HD Hyundai Heavy Industries announced that it had signed a Master Ship Repair Agreement (MSRA) with the U.S. Navy's Military Sealift Command, obtaining certification to repair U.S. Navy vessels. This made it the first South Korean shipbuilder to receive such certification. In early August of this year, it successfully won the bid for the regular overhaul of the 41,000-ton supply ship "USNS Alan Shepard (T-AKE-3)" belonging to the U.S. Navy's Seventh Fleet.
Samsung Heavy Industries' strategy is to go beyond mere joint construction and contribute to strengthening the U.S. shipbuilding ecosystem. To this end, it will establish ship equipment clusters, set up training centers for skilled workers and crew members, and enhance the soft competitiveness of the U.S. shipbuilding industry. Additionally, it plans to expand joint construction projects with overseas shipyards, such as those in Southeast Asia, to strengthen its global shipbuilding network.
A representative from Samsung Heavy Industries stated, "The company's 50 years of accumulated technological expertise will create synergistic effects through the 'MASGA' cooperation. At the same time, cooperation between South Korea and the United States in areas such as technological exchange and talent development in the shipbuilding industry will accelerate, making significant contributions to enhancing the competitiveness of the U.S. shipbuilding industry."
