HD Korea Shipbuilding & Offshore Engineering, the intermediate holding company for HD Hyundai’s shipbuilding segment, announced on the 30th that it has signed a “Business Cooperation Agreement for Shipyard Modernization to Revitalize the U.S. Shipbuilding Industry” with U.S.-based Fraser Industries.

Through this agreement, HD Korea Shipbuilding & Offshore Engineering will provide, as a package, its shipyard design and construction know-how, production and operation systems, and data management technologies, and will promote shipyard modernization projects at local U.S. shipyards.

The signing ceremony, held in Washington, U.S., was attended by Kim Hyung-kwan, CEO of HD Korea Shipbuilding & Offshore Engineering, technical advisor Shin Jong-gye, and Patrick Kelly, CEO of Fraser Industries.

This agreement is the first project pursued since HD Korea Shipbuilding & Offshore Engineering added “digital engineering and manufacturing platform development and supply business” to its articles of incorporation in March as a business purpose and presented comprehensive shipyard construction solutions as a future growth engine.

The two companies plan to cooperate on shipyard diagnostics and improvement plans, yard and plant layout design, introduction of robotic and automated facilities, optimization of cost, process, quality, and productivity, application of artificial intelligence (AI) and data-based digital solutions, expansion of supply chains, and development of technical personnel.

HD Korea Shipbuilding & Offshore Engineering will provide its shipyard design and construction know-how, production and operation systems, and data management technologies as a package. The approach is to supply the technologies and management frameworks required for the entire process from shipyard construction to operation.

The two companies plan to sign a supply contract for a “Shipyard Modernization Consulting Program” within the year. Fraser Shipyards, located on the shore of Lake Superior in the United States, will be used as a demonstration model for the modernization technologies.

The Great Lakes region is an area of active shipbuilding, maintenance, and repair in the United States and has an established shipbuilding equipment supply chain. Fraser Shipyards, together with Fincantieri Marine Group and Donjon Marine, has formed the “Great Lakes Shipbuilding Coalition” and is jointly participating in the U.S. Coast Guard’s new medium icebreaker program.

HD Hyundai plans to enhance the productivity and operational efficiency of Fraser Shipyards and then expand related projects to other shipyards in the United States.

Patrick Kelly, CEO of Fraser Industries, said, “We have decided to work with HD Hyundai to introduce advanced methods throughout overall shipyard operations,” adding, “This cooperation will serve as a starting point for the revival of the U.S. shipbuilding industry.”

Kim Hyung-kwan, CEO of HD Korea Shipbuilding & Offshore Engineering, said, “We will provide the know-how needed from shipyard design to operation to help Fraser Shipyards establish itself as a base for rebuilding the U.S. shipbuilding industry,” and added, “We will expand the scope of cooperation into various areas going forward.”

HD Hyundai is also pursuing local shipbuilding cooperation and workforce development projects in line with U.S. policies to rebuild its shipbuilding industry. Chung Ki-sun, Chairman of HD Hyundai, stated his intention to cooperate in the U.S. shipbuilding innovation process at the APEC Future Tech Forum held in October last year.

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