HD Hyundai, Kiewit join forces to build advanced U.S. shipyard by 2029

HD Hyundai is joining forces with U.S. construction giant Kiewit to build a state-of-the-art shipyard in the United States by 2029. The joint venture aims to combine Korean shipbuilding expertise with American industrial construction capabilities as the two countries seek to strengthen shipbuilding cooperation.

The two companies formed a strategic partnership in July and have since discussed joint shipbuilding projects in the United States. Several potential sites in the southern and western United States are under consideration, with construction targeted to begin in 2027 and operations scheduled to start in 2029. The shipyard is also projected to employ around 3,000 people once it becomes fully operational.

Although the investment amount and ownership structure have yet to be finalized, HD Hyundai is considering taking a majority stake.

The new facility will be the first shipyard in the United States to adopt HD Hyundai's Future of Shipyard model, which the company is developing in Korea. At the heart of the model is digital twin technology, which creates a virtual replica of a physical shipyard to monitor material locations, production progress and work being carried out on individual vessels across different sections of the facility in real time.

Automated production systems and robotic welding will also be introduced to help address the shortage of skilled workers in the United States.

The new joint shipbuilder will pursue contracts to build logistics support vessels for the U.S. Navy and commercial ships. The joint venture will also consider supplying shipbuilding blocks and modules to other U.S. shipyards and expanding into infrastructure projects, including port cranes used to load and unload shipping containers.

Shipbuilding blocks are large prefabricated sections of a vessel's hull, while modules are preassembled units containing piping, machinery and electrical equipment. By sourcing these components, U.S. shipyards can reduce the amount of fabrication and assembly work required on-site.

"The launch of the joint venture marks an important milestone that demonstrates HD Hyundai's commitment and vision as a strategic partner of the U.S. shipbuilding industry," said Choi Han-nae, head of corporate planning at HD Korea Shipbuilding & Offshore Engineering.

"We will contribute to rebuilding the U.S. shipbuilding industry, expanding shipbuilding cooperation between Korea and the United States and continuously pursue finding new opportunities."

BY SUK GYEONG-MIN [[email protected]]