A deal between the US and South Korea could help narrow the naval race with China.
America’s largest military shipbuilder has signed a deal with a South Korean company that experts say could be a big step in helping the US Navy build new warships to keep pace with rival China in fleet size.
At a defense exhibition in Maryland on Monday, Virginia-based HII (Huntington Ingalls Industries) and South Korean Hyundai Heavy Industries signed the memorandum of understanding (MOU).
Today’s agreement reflects our commitment to explore all opportunities to expand US shipbuilding capacity in support of national security,” HII Executive Vice President Brian Blanchette said at a ceremony at the Sea Air Space 2025 exposition.
“By working with our shipbuilding allies and sharing best practices, we believe this MOU offers real potential to help accelerate delivery of quality ships.”
A Hyundai Heavy Industries statement noted that both HII and the South Korean shipyard build Aegis destroyers, the backbones of the US and South Korean surface fleets. Aegis ships provide protection against missile threats, including powerful ballistic missiles in the arsenals of rivals China and North Korea.
“This MOU is particularly significant as it marks the first collaboration between two leading shipbuilding companies from Korea and the US, both of which have the capability to construct the world’s most advanced Aegis ships,” the statement said.
Hyundai Heavy Industries operates the world’s largest shipyard in Ulsan, South Korea, and it builds 10% of the world’s ships, according to the company’s website.
Analysts have long called for the US to take steps with allies like South Korea and Japan to cooperate on naval shipbuilding as Chinese shipyards have been churning out warships at breakneck speed, giving the People’s Liberation Army Navy the world’s largest fleet.
Washington, on the other hand, has been unable to keep up because of a lack of US workers and limited shipyard space. “This agreement is a strong start towards alleviating the impact of America’s shortfall in shipbuilding capacity,” said Hawaii-based analyst Carl Schuster, a former US Navy captain.
In November of 2015, the Aegis destroyer USS Stethem of the US Navy docks at a military port in Shanghai. In November of 2015, the Aegis destroyer USS Stethem of the US Navy docks at a military port in Shanghai.
Schuster said while changes would be needed to US law to enable the South Korean shipyard to begin fully constructing destroyers for the US Navy, the pact signed Monday could yield immediate benefits.
He stated, “US law does not prohibit using foreign yards to repair and maintain US Navy ships; we have a 36-month backlog on shipyard maintenance and hull refurbishment.
Another South Korean shipyard, Hanwha Ocean, last month completed a seven-month overhaul of a US Military Sealift Command supply ship, the USNS Wally Schirra, a feat a US Navy admiral called a “landmark achievement.”
“Maintenance in Theater reduces downtime and costs, while enhancing operational readiness,” Rear Adm. Neil Koprowski, commander of US Naval Forces Korea, said in a statement.
But cooperation between the builders of Aegis destroyers takes the alliance to a higher level.
